The Second Break of the 50-Day Moving Average: A Stronger ASX Momentum Entry

Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | Updated August 2026

The second break of the 50-day moving average is often a more compelling ASX momentum entry than the first. Gary Glover's anecdotal observation, developed across his trading career, is that a stock which breaks above its 50-day, pulls back to sit on it or dips just below, and then reclaims it has shown the line holding as support on a retest — not merely on a single cross. This short note explains why that secondary reclaim matters, how it fits the broader 50-day moving average trading system, and — using WiseTech in July 2026 — what a stock still waiting for the clean second break looks like.

Why the Second Break of the 50-Day Is Often the Stronger Signal

In a mixed or low-conviction market, the first time a stock reclaims its 50-day moving average is not always the highest-quality signal. The move can be a single cross that fails on the next pullback. The second break tells a different story: the stock has already been above the 50-day, come back to test it, and reclaimed it — evidence that the line is acting as support rather than a level the price merely brushed once.

In the 10 July 2026 session Gary Glover pointed to this structure on several ASX names: a stock that breaks the fifty, comes back either to hold it or break below it, and then comes back up through it was, in his description, the setup working more effectively in that environment. A secondary reclaim accompanied by a lift in volume — the kind of pivot-day volume Stan Weinstein looks for — adds confirmation that the retest has been absorbed.

This is a practitioner observation, not a formal study. The 50-day moving average remains a minimum trend filter rather than a standalone buy signal, and the second-break structure is one refinement within the wider framework, not a system on its own.

A Live Example: WiseTech Still Waiting for the Clean Second Break (July 2026)

The clearest way to understand the second break is to watch a stock that has not yet given one. In his 14 July 2026 session, Gary Glover described WiseTech (ASX: WTC) doing the opposite of a completed second break: it had broken above its 50-day moving average, fallen back below, broken above again and fallen back again — flatlining around the line without a clean reclaim holding on the retest. That repeated crossing back and forth is exactly the low-quality signal the second-break discipline is designed to filter out.

The read is instructive because WiseTech was, at the same time, attempting to build a 0-1-2-3 base of four consecutive higher lows after a heavy decline. The higher lows told Gary the downtrend had stopped; what the stock still lacked was the confirmation — a clean reclaim of the 50-day that holds on the retest. Until that arrives, the disciplined response is to wait rather than act on each cross. Gary was explicit he had no trigger yet. This is a dated session observation, not a recommendation.

Update — 31 July 2026: Seventeen days later the stock had still not produced the clean second break. In his 31 July 2026 session Gary Glover described WiseTech as having tried to build for a while before the structure rolled off, then putting in what he called its first decent block of buying in some time — while noting it had not yet broken a swing high, leaving it less advanced than other names he was watching. On the second-break test the position was unchanged: no reclaim of the 50-day holding on a retest, and so no trigger. This is a dated session observation, not a recommendation.

Update — 4 August 2026: Four days later the structure changed shape — but still without producing the second break. In his 4 August 2026 session Gary Glover described WiseTech as having gone sideways for a while after a month to six weeks of heavier volume, then flashing down on the daily chart to make a new low, and then rallying out of that low in what he called an aggressive manner and on pretty good volume — "a bit of a spring type of setup." He noted Xero (ASX: XRO) had done the same thing over the same period, and that Xero's undercut had come back to where its last major leg started years earlier, a long-term key level.

The distinction matters for the test this note describes. A spring is a supply event at the low — evidence that the selling has stopped. The second break is a demand event at the 50-day moving average — evidence that the trend filter is holding on a retest. WiseTech had produced the first and still not the second, which is why the discipline still said wait. Gary was explicit that it remained early and a laggard within its own group: TechnologyOne (ASX: TNE) and the stronger software names had already broken above the fifty, come back to it and gone again, while WiseTech, Xero, REA Group (ASX: REA) and HUB24 (ASX: HUB) were the ones following from further down. He flagged WiseTech as one to watch around reporting season, noting the issue had generally been the sideshow around the reporting rather than the reporting itself. These are dated session observations, not recommendations.

Depth is the other half of the read. How far a stock has fallen sets how much repair the base has to do before any of this matters — the class-dependent bands are covered in how deep an ASX pullback can go.

How Deep a Prior Decline Changes What the First Reclaim Means

Update — 7 August 2026: In his 7 August 2026 session Gary Glover put a number on the rule this note describes, which he had previously stated only qualitatively. His anecdotal observation, developed across his trading career on the ASX stocks he reviews, is that the depth of the prior decline decides whether the first reclaim of the 50-day moving average can be relied on at all.

Depth of prior decline	Behaviour on the first reclaim of the 50-day MA	What Gary waits for
Shallow — 15% to 25%	Greater likelihood of continuing higher	The first break is tradable
Deep — 40% to 70%	Prone to failure; typically cuts back through	The second break, or the third

In his description, a stock that has come back only fifteen to twenty-five percent and then reclaims the line has a reasonable chance of continuing; a stock reclaiming the same line after a decline of forty to seventy percent is prone to failing on that first attempt and generally needs a second or third test before it holds. The mechanism is the same one covered in why beaten-up ASX stocks struggle to rally — holders who bought at higher prices sell into the recovery, absorbing the advance.

He worked it on Santana Minerals (ASX: SMI), down from roughly $1.20 to 40 cents — about 67% — and still with only one swing high broken on the recovery. Life360 (ASX: 360) and Pro Medicus (ASX: PME) were the illustrations of the pattern completing: in his description the first reclaim fluttered and the second settled. He also noted Stockland (ASX: SGP) had tested, come back below and was hugging the line without yet showing strength.

Depth also governs what a trader can do once the reclaim finally arrives. Where the structure has tightened into a narrow range, the break of that range gives an entry and a stop only cents apart — the mechanics are set out in narrow range day trading and the NR7 entry. These are dated session observations, not recommendations, and this is a practitioner observation rather than a formal study.

Does the Second Break Work Better on Some ASX Stocks Than Others?

Gary Glover's anecdotal observation, developed across his trading career, is that the second-break structure reads differently depending on the kind of ASX stock it forms on. In his 31 July 2026 session he drew the distinction directly: the faster momentum names he normally trades tend to hug the 50-day moving average and then roll away from it once they lose it, whereas the larger industrials give what he described as a smoother ride — and it is on those slower names that the secondary break had been generating his better signals.

The structure he looks for on that slower group is a sequence rather than a single cross: a break above the 50-day, a pullback that makes a higher low, sometimes a second higher low, and then the secondary break. He also observed that the larger ASX 300 names tend to track the 20-day moving average rather than the 10-day that more aggressive stocks respect — a difference within the 10/20/50-day moving average framework rather than a different signal.

Named examples from that session sit on both sides of the line. Gary observed that Seek (ASX: SEK), WiseTech (ASX: WTC) and CAR Group (ASX: CAR) had each been crossing above the 50-day and falling back below it repeatedly — too loose for the setup to be actionable — while Pro Medicus (ASX: PME) had, in his description, squeezed up on the second test and not looked back after that second break above — the one name in the group that gave the completed structure. Gary also noted he had been considering this slower structure for a less actively managed portfolio, precisely because it demands less day-to-day management. These are dated session observations, not recommendations.

Watch the sessions this note draws on: 10 July 2026 session · 31 July 2026 session · 4 August 2026 session · 7 August 2026 session

Remember that past performance is no guarantee of future results, and all trading involves risk.

Frequently Asked Questions

What is the second break of the 50-day moving average?

It describes a stock that breaks above its 50-day moving average, pulls back to test the line — sitting on it or dipping just below — and then reclaims it a second time. Gary Glover's anecdotal observation is that this secondary reclaim, especially on a lift in volume, is often a more reliable momentum entry than the first cross because the line has held as support on a retest.

What does a pending or failed second break look like?

A stock that keeps crossing above and falling back below its 50-day moving average — flatlining around the line without a reclaim that holds on the retest — has not yet given a clean second break. Gary Glover described WiseTech (ASX: WTC) this way in his 14 July 2026 session: repeated crosses in both directions, no trigger. The second-break discipline is what keeps a trader out of a stock until the line holds. This is a dated observation, not a recommendation.

Does the second break of the 50-day work better on some ASX stocks than others?

Gary Glover's anecdotal observation is that it does. Faster momentum names tend to hug the 50-day moving average and roll away from it once they lose it, while larger, slower-moving ASX 300 industrials more often produce the full sequence the second break depends on — a break above, a higher low or two, then a secondary reclaim. Those larger names also tend to track the 20-day moving average rather than the 10-day that more aggressive stocks respect. This is a practitioner observation from his 31 July 2026 session, not a formal study.

What is the difference between a spring and a second break of the 50-day moving average?

They are evidence about different things. A spring happens at the low: the stock undercuts a prior low, fails to follow through, and reverses on volume — evidence that selling has been exhausted. A second break happens at the 50-day moving average: the line is reclaimed and then holds on a retest — evidence that the trend filter is being respected. Gary Glover described WiseTech (ASX: WTC) as producing the first without the second in his 4 August 2026 session. A stock can spring and still have no second break.

How deep a correction makes the first break of the 50-day unreliable?

Gary Glover's anecdotal observation, developed across his trading career on ASX-listed stocks, is that a stock reclaiming its 50-day moving average after a shallow correction of 15% to 25% has a reasonable chance of continuing, while one doing the same after a decline of 40% to 70% is prone to failing on that first attempt and generally needs a second or third test. The mechanism is overhead supply — holders who bought higher sell into the recovery. This is a practitioner observation from his 7 August 2026 session, not a formal study.

Is the 50-day moving average a buy signal on its own?

No. The 50-day moving average is a minimum trend filter, not a standalone buy signal. A trader still needs the wider setup to confirm — the moving average helps time an entry within a valid momentum structure rather than generating trades by itself.

Sources

#	Source	Type
1	Gary Glover (AR 259215), Novus Capital. FMP session, 10 July 2026.	Practitioner session
2	Gary Glover (AR 259215), Novus Capital. FMP session, 14 July 2026 (https://youtu.be/YQJ8SCb0ZGY) — WiseTech pending-second-break observation.	Practitioner session
3	Stan Weinstein — pivot-day volume concept (referenced by Gary Glover, 10 July 2026 session).	Session reference
4	Gary Glover (AR 259215), Novus Capital. FMP session, 31 July 2026 (https://youtu.be/GA6SNOAPuwg) — WiseTech follow-up and the faster-vs-slower stock distinction.	Practitioner session
5	Gary Glover (AR 259215), Novus Capital. FMP session, 4 August 2026 (https://youtu.be/XI64DunmccY) — WiseTech and Xero spring observation; spring-versus-second-break distinction.	Practitioner session
6	Gary Glover (AR 259215), Novus Capital. FMP session, 7 August 2026 (https://youtu.be/bgiyhJtVxxc) — the quantified correction-depth bands (15–25% vs 40–70%); SMI, 360, PME and SGP examples.	Practitioner session

All Gary Glover observations in this article are anecdotal practitioner observations developed across his trading career — not formal studies.

Related Finer Market Points Educational Resources

• The 50-Day Moving Average Trading System — Christopher Hall

• The 0-1-2-3 Base: How Gary Glover Reads Four Consecutive Higher Lows for an ASX Bottom — Christopher Hall

• How Deep Should an ASX Pullback Go? Retracement Depth for the Index, Industrials and Miners — Christopher Hall

• Why Beaten-Up ASX Stocks Struggle to Rally: The Disappointed Buyer Problem — Christopher Hall

• Narrow Range Day Trading: How an NR4 or NR7 Contraction Defines the Entry, the Stop and the Risk — Christopher Hall

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Analysis attributed to Gary Glover (AR 259215) reflects his anecdotal observations developed across his trading career, shared in a recorded weekly session with Finer Market Points. It is general commentary, not personal financial advice, and is not a formal study. Gary Glover is an Authorised Representative of Novus Capital Limited (AFSL 238 168).

Educational Disclaimer: This content is for educational purposes only and does not constitute financial advice. Past performance is no guarantee of future results. Consider your financial situation and seek professional advice before making investment decisions.

Finer Market Points Pty Ltd, CAR 1304002, AFSL 526688, ABN 87 645 284 680. This general information is educational only and not financial advice, recommendation, forecast or solicitation. Consider your objectives, financial situation and needs before acting. Seek appropriate professional advice. We accept no liability for any loss or damages arising from use. Authors and presenters may hold positions in discussed companies and investment products.