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.

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.

#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.

#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.

#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.

#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!

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.


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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