Thursday, October 17, 2013

There can hardly be a better time to buy Globo

The kind of chart pattern that is seen on Globo (LSE:GBO) shows that now is one of the best times to buy long the shares. The bullish bias in the market is still intact – only that there is a good pullback which offers and excellent buying opportunity.

Further northward move was challenged in this month, and according to my price analysis, 4 EMAs are used. They are EMAs 10, 20, 50 and 200 (the color that stands for each EMA is shown at the top left side of the chart). The EMAs support a bull market, and the pullback towards the EMA 20 offers a long trade possibility. With a long trade in place, one could place a stop around 64.500. This is a great way to fry the bear which has already made itself vulnerable. We have already been planning to roast the game; it now rubs itself with vegetable oil and sits beside a fire. 

Conclusion: In an imperfect market, Globo shares may assume another lease of bullish trend and go determinedly upwards. Why do we prefer perfection in the imperfect world? We ought to know how to face uncertainty successfully, rather than seeking certainty (which is illusory). Looking for assurance in everything will not be beneficial in the long run. It cannot benefit you in trading, though it may help in some areas of human endeavors. In trading, uncertainty has become our permanent ally.

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

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