Xcite
Energy stock (LSE:XEL) is bearish in outlook, and there is no hope of a
significant recovery right now. When the market rallies, it would simply
proffer opportunities to sell short.
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 corner of the chart. All the
EMAs are sloping downwards, showing that long trades are currently not logical.
Anytime the EMA 20 or the EMA 50 is tested, one would look for a way to sell
short when a bearish candle forms.
Unless
the EMA 200 is breached to the upside, and the price closes above it (a Golden
Cross), long trades would be suicidal. Those who have been caught in a wrong
direction may want to do something about that. We gauge the amount of
negativity by hedging with positions that are initially negative but which end positive.
Unless
the aforementioned “Golden Cross” happens, things would continue to look dismal
on Xcite Energy, coupled with government actions, which sometimes have effects on
companies. More and more, what governments decide to do will have more effect
on the markets than economic figures now dictate the movements of the prices,
which are often unconnected to what is happening in the financial sector. In
face of these uncertainties and abnormalities, there is one sure thing: the markets
would continue to move seriously.
This forecast is ended by the quote below:
“Identifying the general trend whether on the
short/medium/long term is the most essential, and when you figure it out, you
stay with the trend. You buy on dips or sell on rallies according whether it’s
a down or up trend, but you never bet on a correction against the general
trend. Committing to this rule will protect you from sudden and huge losses, as
well as guarantees that you will be able to gain the most from a trend when the
right moves happen.” - Mohammed Isbeer
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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