Lonmin shares (LSE:LMI) are supposed to continue going
further and further south, given the current price action and the dominant bias
in the market. What is happening right now is a good opportunity to go short
again.
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. It can be seen that all the EMAs are sloping downwards, with a
clear Death Cross, denoting that the bearish outlook on the market is very
strong. This is a type of the market in which adamant bulls are punished.
Recently, the price made a shallow rally attempt, trying to
cross the EMAs 10, 20, and 50 to the upside. The rally attempt was halted,
making the price to come down again. This is a bearish signal: The price could
attain the demand levels at 20.00 and 15.00 within the next several months.
Unless the EMA 200 is breached to the upside, the bearish
bias would be valid, plus long trades would not make any sense.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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