Small Cap has broken the medium term trend.. trading below the medium term trend line and touched 30 weeks moving avg and bounce back in last week. However, 30 week moving avg has been flattening out... coming week and month end closing is important for small cap trend... my small cap/large cap ratio also not favoring small cap index...
The market has made higher highs, but a divergence in relative strength is seen.
Looking the base count as well, there is a time to cautious, meaning we must scale back our exposure or start taking profits.
On the other side, a weaker market presents the opportunity to identify the leading stocks.
Chart reflect that BSE small cap index has been in negative territory since Jan 2018 and may be reaching at crucial support level so if it does not hold then 500-600 point further breakdown cant be ruled out
Looks like it is almost finished with the accumulation period and getting out of it.
We have been accumulating for almost 6-7 months. And it seems like now it's time to fly.
It making higher lows under resistance, and consistently making attempts to break 200 MA.
