Small Cap - Why It Is Time To Be Cautious
Look at the following chart of BSE Small Cap Index from 2008 onwards.
Look at the yellow and red lines at the bottom .
Whenever yellow line crossed the red line from up to down, we got a significant correction in the past - range of correction was different ( minimum was 20%) .
It has again happened in this month.How deep it can go , no one can tell in advance. But it is time to be catious.
These are just historical observations. May or may not play out again but as they say history does not repeat but it rhymes.
Also keep in consideration that the observation of a monthly chart take time to play out. They don’t work overnight.
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