The 200-days moving average (DMA) is used by investors to identify the trend. Basically, the average indicates sentiment turning from bearish to bullish from a medium-term perspective when a stock crosses 200-DMA while rising.
Stocks that cross their respective 200-DMA while rising indicates a positive signal, as there is a change in their underline trend.
The crossing of 200 DMA upward shows bears covering short positions and bulls accumulating stocks. When correlated with other averages like 50 DMA and 100 DMA, the stock crossing 200 DMA having 50 DMA and 100 DMA below, have seen a significant jump in prices.
