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
No comments:
Post a Comment