Query on Technicals

Nifty looks oversold but broke it’s 200 day EMA today. Now will it go up or down.

Disc - I don’t know the T of technical and got this info from investing dot com. So apologies if posted something childish

Generally, Overbought markets are most deadly to sell and oversold markets are most deadly to buy as we never know where’s the top/bottom.

News definitely looks horrible globally and global mrkts esp US have broken all levels of support.

So, i feel worst is over in the short term but bounces will be Swift and short. It’s better not to keep a V shape recovery .

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I don’t know, obviously. As there are more than one reason for the current fall, and the heat is felt across the globe, so we too are facing it.

From the looks of it, from 18000 which got hit twice, it is coming down breaking support levels, so it could come down more. RBI may hike interest rates, following other central banks, and I guess that is already factored in, or it could be a reason for another drop, and then it could fall more owning to already existing reasons, or stay put.

There are opposing statements given by different people. One argument is that bull markets continue for extended periods of time for various reasons. Another argument is that, markets wait for a reason, real or perceived, to fall.

Now we have real reasons, not just perceived ones, so there could be more fall. It is said that no one can predict the exact bottoming out.

So have a plan ready for ups and down, be a bull and a bear :ox: :bear:

Have coffee and ice cream, depending on the weather :coffee: :ice_cream:

You know my strategy. I’m not affected by all this. Out of curiosity, I just wanted to know which is more effective, overbought/oversold or 200 DEMA

Of course I do, I was saying it generally. Don’t you like coffee and ice cream? :grin:

AFAIK, we should look at things in conjunction, the more the things, the better the outcome. So oversold and overbought zones, moving averages, support and resistance levels, candlesticks, patterns, trend lines, retracement, time frames etc etc.

200DEMA taken out, 50WEMA is yet to be crossed, looks like it could happen this week.

Nobody can tell. Even the ones who know technicals can’t tell you this. As an investor I like dips. Every 3 months I would like such 5 percent dips. Always an opportunity to add more.

Disclosure: I never understood technicals. So may be that’s why I do not believe in any of the parameters. Strongly believe in random walk theory.

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