The 50-day moving average, a simple average of the last 50 days' closing prices, provides the best balance between the long-term trend and immediate direction for a stock/index. Many institutions view the 50-day line as a level at which they can add to their positions at a reasonable price. This is the reason why quality growth stocks with good institutional sponsorship often find support around the 50-day moving average level. The 50-day is the most widely followed moving average by investors and analysts.