Glencore International shares (LSE:GLEN) have been plunging
and they would continue to plunge. This is a strong bear market and it is
expected to continue. The only sensible thing to do here is to go short, for expert
traders follow the line of the least resistance, cutting small losses along the
way (which they tend to forget easily). They just keep doing what they need to
do and let profits come naturally.
4 EMAs are used for the 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. It can be seen that all the EMAs are sloping downwards, showing a
strong downtrend. New sellers may want to sell a retest of the EMA 20 or 50,
especially when a new bearish candle forms following that.
Glencore Internation would continue plunging and the price
might reach the demand zones at 120.00 and 110.00 eventually. It is never recommended
to go long in this market unless the price crosses the EMA 200 to the upside
and closes above it.
Some people who go long in this market right now may think
they are doing the correct thing. When trading, incorrect approaches might make
you appear like a super trader sometimes, and you would feel you are right.
This is true: you can toss a coin many times, and have heads up, in case that
is what you predict. However, you cannot win always by going against the trend and
you may end up losing your portfolio.
This forecast is ended by the quote below:
“Do not over
trade by being tempted to take trades that cannot be considered perfect
setups.” – Paul Nojin
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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