Tesco stock (LSE:TSCO) has been dropping like a
stone for most of this year, although the price has kind of consolidated around
the months of April, May and June 2014. Since then, the price has broken out to
the downside, trending south. This southward trend is likely to continue.
Here, we use 4 EMAs. They are EMAs 10, 20, 50 and
200. The color that stands for each EMA is shown at the top left part of the
chart. As you can see, the EMAs are all sloping downwards, confirming the
helplessness of the bulls. The EMAs 50 and 200 are great barriers to any
rallies that may occur on the way down. Any rally into the EMAs 20 or 50 would
mean another great shorting opportunity. As the price retraces, one may need to
look out for the time when the price goes into an equilibrium phase. This is
the area where another breakout may occur.
Tesco stock price may go down further, reaching the
accumulation territories at 240.00 and 230.00 respectively. When one determines the dominant bias on a
big time horizon, one may then want to look for specific entry points on
smaller time horizons.
This forecast is ended by the quote below:
“I find
that taking a break from trading makes it difficult to get back into the
trading mindset. While I do take breaks, sometimes vacations, when I am
actively trading I prefer to keep my mind on trading, including writing,
blogging, and interacting with other traders through social media.” – Chris Ebert
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
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