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 .
