Go long, and go long on Yahoo! (NASDAQ:YHOO). The stock has been in a bullish mode for a long period – and the same is valid for the year 2013. Oh bull, please continue riding your profits! Is there anyone put on horse-back who will not raise his head backwards?
Looking above, there is a significant uptrend in the market. 4 Exponential Moving Averages (EMAs) 10, 20, 50 and 200 are used for the chart analysis. All the EMA support a bullish propensity. A new long trade could be assumed when the EMA10 retraces and touches the EMA 20 (or especially the EMA 50). That is an example of buying low in the context of an uptrend. At the time this article was being prepared, Yahoo! was trading at 20.00. It could reach 30.00 this year, but there is some downside risk that could take the market to support zones at 19.50 or 19.00 in the near term. Oh my socks!
This article is ended with the quote below:
“Trusting your intuition is the hard part. It requires that you look inward to decide what to do. You can't depend on mass opinion. It is usually right in a strong bull market, but dead wrong when the markets change. Following the crowd may work sometimes, but it's not a strategy that works consistently. You can't assume that when you "buy low," there will be a large cache of naïve amateur buyers ready to keep pushing the price up higher. If you wait too long, you'll likely hit resistance, and it will be too late to profit from the move. It is nice when this strategy works, but don't count on it.” – Joe Ross (www.tradingeducators.com)
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