20 DMA - 21 July 2008 Indian Stock Market

The 20 DMA (daily moving average) is often considered as the best short-term trend indicator.

After falling below that on May 22, the Nifty had made multiple attempts to take it out — once on June 18 and again on July 11. But the failure of all such attempts meant that before Friday, it had spent 41 hapless nights below its 20 DMA — the longest span in more than a decade. No wonder, it had lost a whopping 25% in this period.

Now, with the 20 DMA conquered, bulls have definitely taken the first step in redeeming themselves.

20 DMA was cross on Friday 18 July 2008

From
Derivatives Diary,
Investor Guide, Economic Times 21 July 2008
by Shakti Shankar Mahapatra
shakti.patra@timesgroup.com