The price on the Royal Bank of Scotland (LSE:RBS) is going downwards and would keep on doing so. Since the price reached its yearly peak in January 2013, it has been coming down.
The 4 EMAs used on the chart (the EMAs 10, 20, 50 and 200) confirm the statement above. The EMAs 10, 20 and 50 give a significant bearish signal as the stock trades below them. This bias would soon be confirmed by the EMA 200 (if it fails to halt further bearish move), and there would be a Death Cross on the chart, when the price closes below the EMA 200. Go short on this stock.
The trading world is full of those who know the price of everything and the value of nothing. The corpse does not know how much the casket costs. Traders ought to turn a new leaf when it comes to trading approaches! But it is easier said than done. Nevertheless, the trader who is engaged in learning about the normal trading mindset would continue to improve their personal psychology, as well as their trading skills. This is the trader that may survive all market conditions.
This article is ended with the quote below:
“I am generally aware of the fundamentals of a company, but about 95 per cent of my decision making is based on technical analysis. As a trader, timing is key and
regardless of how good a story may appear to be, if price action doesn’t support the story I consider it too risky to be involved. As I like to say “Only Price Pays!”’ Brian Shannon (TRADERS’ February 2013, www.tradersonline-mag.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
For more articles, go to: http://www.advfn.com/newspaper/authors/azeez-mustapha
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