I'm no charting expert, but I beleive looking at just one technical indicator is probably not very wise.
Technical analysts use numerous indicators simultaneously to assess the liklihood of the next price movements. The most common are MACD, RSI, Stochastics, Volume, EMA's, bollingers, chart patterns (e.g. bullish flag, cup and handle). Now I've highlighted liklihood, because you will never get certainty with technical analysis. The more technical indicators that line up, the more the liklihood that the analyst's prediction will come true. I remember reading somewhere that an expert technical trader gets it right maybe 60% of the times (this is for various reasons, which I will not get into here). That means they are still wrong 40% of the times, but over the long run, they will be right more often than not.
That being said, I think by simply looking at a 20 day moving average chart, that will just tell you where the SP sits relative to the last 20 days trading. In this case we are sitting just above the 20 day moving average. Whether it goes up or down, IMO, cannot be determined by just this one technical indicator in solidarity.
That is why for me, whilst I do like to give a little attention to TA, I prefer FA for long term views as I am investor. TA I only really use if I am looking to add to my long position.
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