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Friday, May 25, 2012

EOD Technical Analysis, CNX Nifty - 25 May 2012 - Bearing Golden Crosses..



Nifty - End of Day - 25 May 2012    

Continuing on the last post on this subject, lets do a long term study from 2008.
We were watching the 34 EMA and 200 DMA cross bearishly last week.
We also discussed the more famous 50 & 200 DMA* which have not yet crossed.


Golden Cross (we use the 200 DMA and 50 EMA - see link below) 
http://marketsci.wordpress.com/2010/07/15/roundup-trading-the-golden-cross-2/


From the Chart:
A -  The 2008 Fall : after a bearish cross.
B -  The 2009 - 2010 Bull run : after a bullish cross
C -  The 2011 Fall : We had a Bearish Cross
D -  The 2012 Spike : A Bullish Cross

'D' as you can see, has produced very little for the Long Term Bull.
Notice that we had the 5 EMA/13SMA cross on the EOM as validation (click).
This EOM cross was valid above 5199 for May'12 as studied earlier this month (click).
Helped us avoid a Bull trap.

The effect of 'E' is what one wants to see - we shall watch that one..

Revision of the reads on MA crossovers (studied last at 'D' )... for the weekend.