Hi JG,
It's just a general principle - the 20Day SMA tends to act as support and resistance
Below is a chart of the Dow Industrials going back seven months - and I've marked areas when the 20DMA acted as support and resistance:
I'm a little more worried this time because we're now at the top of a long up trend. So, experience tells me that a break below the 20DMA this time might be a bit more significant. The significance would be magnified if the 10DMA then breaks the 20DMA.
Redbacka.
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Last
8,612.2 |
Change
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Mkt cap ! n/a | |||
| Open | High | Low |
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| XJO (ASX) Chart |