The
situation on Bacanora Minerals stock (LSE:BCN) looks dicey, making traders
wonder whether they should buy or sell. The recent bias was bullish but the
price has been coming down since last month. The trend has turned bearish in
the short-term.
In
the chart, 4 EMAs are used and they’re EMAs 10, 20, 50, and 200. The color that
stands for each EMA is shown at the top left part of the chart. The price has
crossed the EMA 50 to the downside; plus the EMAs 10 and 20 are sloping
downwards. Sure, day traders and swing traders could short this market, aiming
for short-term gains.
However,
position traders may not short the market until there is a Death Cross, i.e.
the EMA 200 is breached to the downside. If the price fails to breach the EMA
200 to the downside, then it could be the beginning of another long-term
bullish journey.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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