What Are Moving Averages?
Simple Moving Average (SMA) calculates the average closing price over a period. Key SMAs: 20-day (short-term), 50-day (medium-term), 200-day (long-term). Exponential Moving Average (EMA) gives more weight to recent prices.
Golden Cross on NEPSE
A Golden Cross occurs when the 50-day SMA crosses above the 200-day SMA. It signals a major bullish trend change. Currently 15 NEPSE stocks show active golden crosses:
Hydropower leads with 8 golden crosses: LEC (score: 76.3), BHL (73.9), GLH (73.7), AHPC (70.0), USHEC (69.5), SGHC (69.3), GHL (67.7), UMRH (62.0). Banking: CZBIL (72.0). Non-Life Insurance: RBCL (74.3). Development Bank: MLBL (70.9). Others: NWCL (65.3). Mutual Funds: NICSF (72.4), NICFC (71.4).
Death Cross on NEPSE
A Death Cross occurs when the 50-day SMA crosses below the 200-day SMA. Currently, zero NEPSE stocks show death cross signals. This is a strongly bullish market indicator.
Trading the Golden Cross
Buy rules: Enter when golden cross forms AND RSI is between 40-70 AND volume is above average. Current opportunities: LEC (RSI: 70.1, vol: 1.2x), GLH (RSI: 68.9), AHPC (RSI: 64.1). Stop loss: Place below the 200-day SMA. Target: Hold for 3-6 months or until death cross forms.
MA Alignment Score
When short-term MAs are above long-term MAs (20 > 50 > 200), the trend is strongly bullish. SHIVM shows perfect MA alignment with price 12.1% above SMA20, 14.8% above SMA50, and 24.9% above SMA200.