The give you an overall picture, I am presenting the line chart once again. Here, 3 Moving averages 50, 100 and 200 periods are shown. The following points to be noted now.
- At point "A", NIFTY dropped below 50 DMA but away from 100 DMA.
2. At point B, NIFTY breached the 100 DMA but away from 200 DMA.
3. At Point C, NIFTY came closer to 200 DMA, after breaching 50 and 100 DMAs.
- At present, the 50 DMA is too close (only 6 Points) to the cross over. Recollect last week's chart, in which I had shown you the past performance when such crossover occurred.
From all the points mentioned above, you can very well infer that, the Bearishness is on the increase. From point no.4, we can see the crossover can occur any day next week. This occurrence has a high degree of chance for an accelerated fall
