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Tuesday, May 31, 2016

Plexus Holdings: Further Decline Expected

Plexus Holding shares (LSE:POS) are expected to decline further. Although the price has been consolidating to the upside in the last few months, the overall bias on the market is bearish, plus the Death Cross effect is still in place.


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. Since March 2016, the price has been consolidating to the upside, but it has not been able to stay above the EMA 200 (a good example of the vulnerability of the upside consolidation).

Long positions are not recommended until the price crosses the EMA 200 to the upside - which would require a serious selling pressure. In fact, further decline on Plexus Holding could take the price towards the support levels at 60.00 and 50.00.

This forecast is ended by the quote below:

“If a company has a lot of cash in the bank and no debt, then it's not going to file bankruptcy anytime soon.” – James Altucher  

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders


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