Keffi Minerals stock (LSE:KEFI) appears to be
rallying in the context of a downtrend. Should one go long? When caught in a
wrong direction, traders who hate to use stops are often forced to run their
positions longer than they can imagine. When many experts are bearish, it is
time for you to be bullish and vice versa.
4 EMAs are used for this analysis and 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. All the EMAs are sloping downwards indeed, and ideally one
should sell short when price tests the EMA 20 or 50, and retraces southwards
following that. When price breaks the EMAs 20 and 50 to the upside, going towards
the EMA 200, then the dominant bias is in jeopardy.
It would be wise to wait for a Golden Cross, i.e.
when price would close above the EMA 200, so that a long trade can be sought.
Or it is better to wait till price closes below the EMA 50, so that renewed
bearish outlook may be capitalized on.
This forecast is ended by the quote below:
“Yes, I
decided to focus on technical analysis which seemed advantageous to me simply
because you can use technical instruments to directly manage risks. And that’s what
matters in the stock market in general and in trading in particular.” – J. C.
Parets
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
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