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Thursday, April 9, 2015

A Violent Breakout Expected on Blinkx

Blinkx stock (LSE:BLNX) is currently a choppy market in which buyers and sellers go through rough times. Looking at the market closely, there is a kind of subtle consolidation. There is no serious confirmation pattern here, but when a breakout does occur, it would probably favor the bears.

In the chart, the ADX period 14 is used. Both the ADX line, +DM and –DM are closely in intertwined, all around the level 20. This shows that the market does not have any momentum, and there is no significant movement. A serious breakout will soon occur. The MACD default parameters has both its signal lines and histogram below the zero line. The means that if there is a group that is winning the battle right now, it is the bears, for the price is consolidating to the downside. There would soon be a breakout in the market, though this does not rule out a possibility of a breakout to the upside as well. 

A break above the resistance line at 34.00 would result on a confirmed bullish outlook, while a break below the support line at 28.00 would result in a confirmed bearish outlook.

This forecast is ended by the quote below:

“Take the time to work on getting to know yourself intimately. After all said and done you are your greatest trading asset from which everything flows, so take the time to learn about yourself, and do so without judging yourself.” - Mercedes Oestermann van Essen

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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