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The bulls are now very aggressive on Coms (LSE:COMS) as the stock broke out of a recalcitrant equilibrium zone. This is a big blow to the bears, which were trying to maneuver the price towards the downside during the recent consolidation.
For the most part of this year so far, the stock moved in a sideways manner before the current breakout, which some people might call a spike. 4 EMAs are used for this analysis (EMAs 10, 20, 50 and 200), and the color that stands for each EMA is shown at the top left corner of the chart. In the face of this serious upward break, the EMAs have been quickly aligned in the direction of the bulls. The recent event on Coms is not a spike; instead, it is a beginning of a new bullish era. However, this is rather a disgrace to the bears: The yaws that would disgrace one would sprout on the tip of one’s nose. Apart from some anticipated price retracements, the price ought to keep on going upwards.
One should not react childishly as a result of any temporary fluctuation in the opposite direction: a way by which traders often end up shooting themselves in the back. Because of our goals, whenever there are unforeseen situations in prices, they are dealt with, using our basic position sizing and risk control rules.
This article is ended with the quote below:
“The reality is that only some minority percentage of individuals will have the talent to outperform the markets and only a tiny fraction will be able to do so with what you term, “a high degree of probability.” – Jack Schwager (www.tradersonline-mag.com)
