Tuesday, August 26, 2014

Keep on Selling Tesco Shares!

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

Learn from the Generals of the Markets: Market Generals

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