Metal stocks have shown long term weakness with respect to BSE500, with support at 6000 levels. Another interesting point to note is that the index has short upward cycles but downward trends tend to drag out for 2 to 3 times the timelines of the upward trends, notable exception being the trend between 2005 and 2008.
Both the MACD and the relative strength indices are beginning to show a reversal downward and the upward trend seems to be losing steam. Hence quite likely that downward movement will begin anytime between now and Feb. So this is a good time to go bearish on the metal futures.
Both the MACD and the relative strength indices are beginning to show a reversal downward and the upward trend seems to be losing steam. Hence quite likely that downward movement will begin anytime between now and Feb. So this is a good time to go bearish on the metal futures.
