BP Plc.
stock (NYSE:BP) was a massive bull market from October 2017 to January 2018.
However, the market experienced a large pullback in February and began to move
downwards. There was a massive drop in early February, and market has been
volatile since then, as it moves sideways in the context of a downtrend.
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.
At the
present, the EMAs 10, 20 and 50 are sloping downwards, denoting a short-term
bearish propensity. However, the long-term bias has not become bearish because a
Death Cross is yet to occur, i.e. the market is yet to cross the EMA 200 to the
upside.
Should the
EMA 200 get crossed to the downside, the long-term outlook for BP would turn
bearish. In case the market is able to go significantly upwards from here, the
long-term outlook would become bullish.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Traders’ realities: Traders' Mindset
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