Moving averages. Whether you love them or hate them, trade with them or without them the fact of the matter is that some of them are very significant, even on their own as they can act as . Once they cross however, their power can absolutely make or break a market as seen countless times in the stock and market but also with and, most recently, its death cross in April of 2018.
What surprises me at this point in time is that not a lot of people, even the analysts that I follow and look up to, are talking about the impending MA cross that is about to happen.
The 20 weekly (red) acted as support during the enitre bull market and as heavy resistance during the curent (and previous) bear market. We are currently right below it and have already failed to push through.
The 200 weekly (green) is perhaps the most important MA in all asset classes across all time frames and, in relation to , represents a line that has NEVER been broken and provided crucial support at the end of the last bear market.
In short, these two are probably THE MOST important MAs when it comes to , period.
And they are about to have a cross.
Since this has literally never happened before I can only guess what the outcome of this will be but do expect some mayor mayor moves. Tink of it like a giant , ready to demolish everything in its way.
Timeframe? The cross could happen as early as 8th of April but not later than the 21th of April. (see blue box)
My personal opinion is that we are getting closer to our final capitulation stage. Be on the lookout for Part II and of the series where I will further expand on my extremely view for the short and mid – term.
Thank you!
Published at Tue, 26 Mar 2019 08:42:16 +0000
