Monthly Charts
We always start with monthly charts wrt long term view .
We look at two things:
First :If some share is below 40 months moving average (40MEMA) and also in sell zone on MACd cycle , then recovery in short/medium term is difficult .It might give some upside moves but they might be limited to a range.
For any significant uptrend, a stock needs to convincingly close above 40 MEMA.
Second :Other reason to start from monthly charts is see whether stock is bottoming out on longer time frame or it is still in free-fall zone. If it is in bottoming out on monthly chart, then we try to see the signs of Stage 1 formation on weekly charts ( though price may be below 40 MEMA)
Hope it helps.
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