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Wednesday, August 7, 2013

Mentum Stock Skyrockets!


 Mentum stock (LSE:MEN) now skyrockets in what  could rightly be called the beginning of a  long-term bullish journey. There are reasons for the current price action, which has gained at least 400% since reaching its yearly low in July 2013. Does the dog bark for no reason?

The 4 EMAs that are used for this analysis (EMAs 10, 20, 50 and 200) can be seen on the chart. The color that stands for each EMA can be seen on the top left side of the chart. The EMAs 10, 20 and 50 have given a clean ‘buy’ signal. Towards the end of July 2013, there has been a Golden Cross on the stock, as the price broke the EMA 200 to the upside. It may happen that the price would try to get corrected, having the EMA 200 as a strong support level. However, The EMAs 10, 20 and 50 would usually signify the direction of the stock, since the northward determination would remain as long as the price fails to breach all the 3 EMAs to the downside. This situation is an indication that any southward retracements in the market would eventually lead to renewed buying pressures.

The quote below ends this piece:

“I ’d rather work with a few clients who understand and believe in the process than try to convince the masses when they’re wrong.” – Jesse Felder (source: www.tradersonline-mag.com)


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

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