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Publishing Technology shares (LSE:PTO) have been trending lower significantly in recent times, and it is expected to crash further. The price hit a strong supply zone in October 2013, following a gap-down in the market. Since then, it has been trending downwards.
Here, 4 EMAs are used. They are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown on the top left corner of the chart. You can see that the price has breached the EMAs 10, 20 and 50 to the downside, as it targets the EMA 200 which is the last hope for the adamant buyers. The EMA 200 may succeed in halting the progress of the bear, but the probability of it being challenged and breached to the downside is very high. Should the expected Death Cross materialize, it would be a new lease of ‘crashing era.’ The long term target for the sellers is at the demand zone of 200.00. The signal here is ‘sell,’ not ‘buy and sell.’ There is no room for hedging – otherwise one will lose both. He who runs after two mice will end up catching none.
Conclusion: As regards the Publishing Technology, the dominant trend is bearish, although there may be noisy rallies on smaller timeframes, which would often be inaccurate. Rookies may prefer to use smaller timeframes, but professionals prefer using bigger timeframes. That is why most of them tend to do swing or position trading, because day trading can really be full of stress.
This piece is ended with the quote below:
“You will not really have failed until you finally give up – a decision that you do not need to make.” – Marko Graenitz
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