Blinkx shares (LSE:BLNX) are experiencing what would rather be called
a false breakout. The bullish breakout is in the context of a downtrend, and it
can be a trap for the unwary buyers.
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 side of the
chart. All the EMAs are sloping downwards; so the current rally attempt might
meet a strong opposition at the EMA 200 (though the price is above other EMAs).
The only condition that can render the bearish outlook useless and
lead to a bullish bias is when the price crosses the EMA 200 to the upside (a
Golden Cross); otherwise, a new lease of bearish run might resume.
Blinkx might go below the demand levels at 20.00, 19.00 and 18.00
within the next several months.
This forecast is ended by the quote below:
“The key to successful trading really is the space
between trades! It’s not just a matter
of making the right trades… but also not doing anything when things aren’t
right.” - Jack Schwager
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders
Don’t Want You To Know: Super Traders
Buy and sell Neteller here; get funded quickly: www.ituglobalfx.com.ng
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