RE: negative divergenceWith regards to your negative diverence of the 50 over the 200 day is most commonly referred to a golden cross very BULLISH. I am new to technical analysis so I dont claim to be an expert but I do know how to retrieve information. I think getting closer to the 200day would be much better then getting farther away, just like riding a trend until it falls and breaks major support levels then maybe hit the sell like at 35cents. Maybe this passage out of an article posted May 28, 2009 on the globe and mail will give more clarity:
"As stock markets surge on hopes for an economic recovery, sometechnical analysts are paying close attention to the 50-day and 200-daymoving averages of the S&P/TSX composite index. Right now, the50-day average is just 325 points below the 200-day average. If currentmarket trends continue, the lines will likely cross in June."
"It's not a perfect indicator, but when a 50-day line crosses above a200-day line - the golden cross - it's considered a bullish sign for astock or index. That's because it indicates that sentiment has turneddecidedly positive. The opposite, when the 50-day average crosses belowthe 200-day average, is called a "death cross," and is a sell signal."
"Still, relying on a single indicator to make investment decisions may not be a wise idea in these uncertain times."
here the link :
https://v1.theglobeandmail.com/servlet/story/LAC.20090528.RMOVINGAVERAGE28ART1852/TPStory/TPBusiness/
The TSX did have a stellar month of may, obivously did not follow the "slogan sell and may and go away" so a sell off is always possible. It will be interesting to see if current trends continue. GLTA those informed.
