Premier Oil shares (LSE:PMO)
may soon experience a severe pullback, based on what is happening in the market
at the moment.
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.
All the EMAs are slightly
sloping downwards while price is below most of them. The most important thing
is that price is below the EMA 200, which reveals a long-term weakness in the
market.
When volatility returns
to Premier Oil, it would most probably be to the downside. More sideways
movement is anticipated this year. The demand levels at 50.0, 40.0, and 30.0,
may be tested.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Traders’ Mindset: Trader's Mindset
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