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Wednesday, May 18, 2016

Blinkx – Is This a False Breakout?

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



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