Nifty awaits death cross
- Nifty has given a spinning top candlestick pattern. Lets see if this one can give a relief rally for bulls.
- Price is trading near the support line of the descending channel so we may get a pause in selling. But intraday up moves can still be sold off because of the strong down trend.
- We may get a death cross in nifty if selling continues. Death cross happens when 50 dma gives a bearish cross below 200 dma this happens in bear market. But there were occasions when these crosses resulted in an opposite directional move. One example is the last death cross happened in US markets which resulted in big up move.
- 20 dma has already crossed below 200 dma.
- Nifty has not closed above 5 day high ema for a long time now.
Lets not get so worried about "Death Cross", in june10 - S&P had a death cross but took support at 1% lower on 440day sma and moved higer, also there was a multi decade support line below death cross which was a strong support...so the whole picture has to be studied before arriving at any conclusion- sujit
ReplyDelete@oracle
ReplyDeleteI think you did not read the text that written below the chart. I too have mentioned the S&P 500 example.