The focus of the articles published until now seeks to offer the reader a different view of markets and their approach to them, considering that in the blogosphere and traditional media will find many articles analyzing specific values made by renowned personalities . However, occasionally you feel out the crystal ball of Technical Analysis and interpret what we ‘re trying to say.
The first two articles published at the beginning of this blog were the technical analysis of 2 Spanish continuous market values: Elecnor and Inditex. Knowing that technical analysis plays with the odds, it is still interesting to seethe forecast gave us in April, whatever the result. This article will go over what was said to Elecnor and a possible future, and the next will be the same for Inditex.
In April analysis for Elecnor: Good technical aspect of Elecnor , the bullish flag that appeared to be drawing the courage invited to think of a bullish bias, which should be confirmed by overcoming the 13 €. Time has shown that the flag stayed in a bull trap and quote lost quickly and forceful support of 10 €, later supported and turn on the support of the 8 €, which appeared in the chart weekly.
The lack of liquidity in such values suggest caution and only trust levels key reference medium term (for example, supports and resistance weekly chart).
What can we learn graphics now?
In the short term (1 month ahead)
Improvement and maintenance above 10 € is key to continue the bullish hope began with the spin to 8 € absolutely.
In the medium term (3 .. 6 months away)
To confirm the continuation of the upward movement there are 2 important appointments; overcoming the 12 € ( the point where the possible banderita sold out), that would mean entering an upward trend in the medium term (2nd bullish) and the altitude of 13 €, which would mark the entry into an uptrend long – term (1a upward).
If things go wrong the weekly chart shows the points that can serve as a brake and / or rotation (8 € and 5.1 €).
What could we do?
These points could serve as a guide for those who would like to take positions in the value prudently, but keep in mind that only represent a more likely scenario.
Remembering easy and profitable strategy article appeared in April with the MM200 blue – curve in the diary chart (200 day Moving Average), which had worked once again:
long cross Entry MM200 upward.
Input short crossing MM200 down.
Warning: This article is not a recommendation to buy or sell securities and any related transaction involves risk of loss, which should not be done if you are not willing to assume.
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