Barclays stock (LSE:BARC) is not an attractive
market right now, but it may go northward this year.
4 EMAs – 10, 20 50 and 200 are used in the chart.
The color that stands for each EMA is shown at the top left part of the
chart. The bullish effort that happened
in January 2014 was rejected and the price plummeted. Right now, the price is
making a renewed effort to go upward and recover its latest losses. The EMA 200
has been tested and it could be breached to the upside. When this ‘Golden
Cross’ is accomplished, the other EMAs would align themselves to support the
bullish effort. The demand zone at 260 should serve as a barrier to any serious
southward attempts.
Conclusion:
Eventually, Barclays stock could reach the supply zones at 300 and 400 this
year. One way to make more gains in the market is to follow the line of the
least resistance. That is why it pays to look for the direction favored by the
market. Once found, one need not bother about the reasons behind the dominant
bias, for a market cannot trend strongly in a direction without a good reason.
This remains the most crucial thing to do: looking for high probability trades
that give you a huge edge. Then you can manage your positions as you lock in
more profits.
This forecast is ended with the quote below:
“Winning traders have high levels of risk tolerance. If
you have trouble taking risks, you'll have trouble trading the choppy, volatile
markets in the short term.” – Joe
Ross
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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