An educational #Thread on 200 DEMA & its imp. in current scenario!
To cut things short 200 DEMA is considered as the decider between who is in dominating i.e bulls or bears. Its equally imp. for #investors & #Traders! Price sustaining below it is considered bad for bulls.
1/n
To cut things short 200 DEMA is considered as the decider between who is in dominating i.e bulls or bears. Its equally imp. for #investors & #Traders! Price sustaining below it is considered bad for bulls.
1/n
Though major indices like #nifty50 , banknifty, small & mid caps index are all trading above 200 DEMA but the major ones are not far from it. A major concern is the darlings of the market having high weightage have started trading below it.
Lets understand more with e.g's.
2/n
Lets understand more with e.g's.
2/n
#HDFC Twins - Combined they have 15% weightage in Nifty & the picture doesn't look rosy.
For the 1st time in this entire bull market rally both have closed below 200 DEMA which was earlier a strong support. Though a LL again would be a confirmation of bears dominating both.
3/n
For the 1st time in this entire bull market rally both have closed below 200 DEMA which was earlier a strong support. Though a LL again would be a confirmation of bears dominating both.
3/n
#ITC - The most talked about stock & the darling of retailers has also just bounced exactly from 200 DEMA at 216.5. Though the overall structure of ITC doesn't look good as its making LH & LL its standing at a do or die level. It would be interesting to watch it next week.
4/n
4/n
#sequent - One of the darling stocks of investors is now down 50% from highs & 33% since it broke the 200 DEMA at 240. This is a live e.g of what happens to a strong stock once it starts trading consistently below 200 DEMA despite correcting 20% from top before breaking it.
5/n
5/n
#dowjones - Not only our markets even US respects 200 DEMA where Dow recently exactly reversed from it & its up around 6% from der. Like #Nifty it also didn't sustain below 200 DEMA in this whole bull market.
So this proves that 200 DEMA imp. is accepted universally by all!
6/n
So this proves that 200 DEMA imp. is accepted universally by all!
6/n
The synopsis of the whole thread is that 1 shouldn't stay bullish if price of any asset class stays "consistently" below 200 DEMA & makes LL everyday.
This shouldn't be used in hindsight as its a lagging indicator though an effective 1.
THE END.
Feedbacks would be appreciated!
This shouldn't be used in hindsight as its a lagging indicator though an effective 1.
THE END.
Feedbacks would be appreciated!
#Hdfc twins - Both down 3% today. Despite being so oversold in daily the sell off continues & both of have now become sell on rise. One should avoid bottom fishing in them until a strong reversal comes 👍
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