Signs That Will Indicate A Bearish Trend In The Stock Market

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Este es un escenario que ha sucedido a lo largo de los años y se refleja en la historia de las inversiones y los mercados financieros. A tal efecto, el Crac de 29 ?? fue el desplome bursátil más devastador en la historia del mercado de valores estadounidense, teniendo en cuenta el scope global y la larga duración de sus secuelas. Hasta el punto que dio lugar a lo ya conocido como Crisis of 1929 also known as The Great Depression and that led hundreds and hundreds of investors to bankruptcy in a very short time.

So that you do not stay in very worrying positions, we are going to show you some of the signals that can occur in the financial markets about the appearance of a downtrend of great depth and intensity. So that from this dynamic you can use the best strategies to minimize this new scenario in the stock markets. Beyond other technical considerations and even from the point of view of the arguments of the securities listed in the equity markets.

The US Stock Market Anticipates Trends

To this end, it should be remembered that in recent trading days the Wall Street market is suffering closures that are truly very worrying for share users, including losses of up to more than 1000 points. These crashes have been caused by the nervousness of investors that led them to withdraw from the market for fear of the negative economic consequences caused by rising interest rates and the United States' trade conflict with China.

On the other hand, the agitation occurs one day after the International Monetary Fund (IMF) cut its forecast for global growth due to concerns about trade wars and weak emerging markets. Therefore, there will be no choice but to be very attentive to what happens in the first equity market in the world. Not surprisingly, it is characterized by anticipating the trend of the stock markets of the rest of the world in one way or another. It can be argued that markets on the other side of the Atlantic have great influence on international stock markets.

Reduction of minimums at closing

Another sign that may indicate that a bearish scenario is approaching in the equity markets is the one referred to the fact that decreasing minimums originate in the prices of securities, sectors and stock indices. Is a very strong and reliable signal to detect that we are facing a clearly selling current that can take the price of the shares much lower than they are at the moment. It is a low current detection system that is fundamentally very reliable and we can run it in complete safety.

On the other hand, there is no doubt that we will need a graph to visualize the weekly closings, which is the moment when this important analysis system for the equity markets can be analyzed. Not only in the purchase and sale of shares in the stock market, but for others, such as those represented by raw materials, precise metals, virtual currencies and any financial asset that is listed on the markets. It will give the exact point at which it will be necessary to undo the positions in financial assets chosen by small and medium investors. Without fear of errors or misalignments in your analysis. You can use it with complete confidence from these precise moments.

Roof training

Within what is technical analysis there are a series of figures that can give us the strange signal that the price of the shares is going to fall in the next trading sessions. Among all of them, there is a fundamentally significant one such as the double and even triple roof. But what does this configuration really entail in the graphics? Well, both double and triple ceilings are generally raised in an assumption channel lateral cuya ruptura de soporte plantea un target bajista. Además se denominan cifras de inversión de tendencia, de alcistas a bajistas. Son muy interesantes y fáciles de comprender para todos los perfiles de inversores.

On the other hand, there is another figure of special importance that also has these connotations. In this case it is through the well-known shoulder-head-shoulder figure. For this case the loss of the support of the line poses a bearish objective of great intensity. At least developed in the short and medium term and that on the other hand has a great reliability in the diagnosis since it is rarely wrong in the direction that the stock market values analyzed in the technician are going to take.

Analysis: descending triangle

As to graphic analysis una de las formas más comunes son los triángulos. Hasta el punto de que están presentes en todos los valores de los mercados de renta variable y pueden darte otra pista de dónde pueden llegar los tiros en las inversiones que has preparado a partir de estos precisos momentos. Sea cual sea el caso, esta clase de triángulos se puede dividir en varias categorías, aún cuando la que vamos a tratar se llama descendente por sus claras implicaciones bajistas.

Well, the descending triangle is the one that is formed by a horizontal line that works as support and a bearish pattern, the price is making decreasing highs within the triangle. If for something this kind of triangles it is for something as simple as they tend to break most of the time. They can give you a point of reference to undo the positions in the equity markets and from this dynamics be in a better position to make the most of your operations in the stock market. Beyond other technical considerations

Tips for trading the markets

A good purchase on the stock exchanges means going a long way so that the results in the form of capital gains are not long in coming. But for this to be defined like this, there will be no choice but to take a series of guidelines and also precautions. With the aim that a lousy position taking it may weigh on our investment in the future. Even when at the cost of developing an uptrend for a more or less prolonged period of time.

Before taking positions on a degree, it is advisable to study its technical and fundamental aspect. Whatever the case, do not leave it to a random choice that can only bring problems to the interests of small and medium investors. Especially since they can originate in the form of disabilities that detract from the value of open operations in the stock markets. This is one of the main tasks that we must preserve from these precise moments and above other more secondary considerations.

Technical analysis with the fundamentals

Having access to the right sectors also simplifies the selection work when creating a portfolio, as it is likely to generate positive market sentiment. Regardless of the selected bet, as long as the fundamental data of the companies is positive. To this end, a very practical measure is to correctly combine the technical analysis with the fundamentals. It works very well, as investors with more experience in the equity markets can find.

On the other hand, we cannot forget at any time we will have to forget the dysfunctions that we may commit at one time or another. As an example, the fact that it is totally normal for investors to enter the stock market out of time. In other words, after much of the bullish training has been consumed. Where it may no longer be the best time to access the markets. It will therefore be another dysfunction that will have to be corrected to obtain the objectives set by small and medium investors.

Ante este escenario, el inversor debe proceder a contar con pautas sólidas para llevar a término su procedimiento de compra. A tal efecto, las sencillas pautas que acabamos de facilitar y que son muy fáciles de seguir, inclusive para inversores menos expertos, pueden ser de gran ayuda. Debido a que al fin y al cabo se trata de rentabilizar el ahorro por encima de otras consideraciones que hemos apuntado en este post. Más allá de otras consideraciones técnicas y tal vez inclusive desde el punto de vista de sus argumentos.