Should You Sell Short Bacanora Minerals?

PUBLISHED: Jun 09 2015 @ 04:26 | Comments (0) | More info about Azeez Mustapha

The situation on Bacanora Minerals stock (LSE:BCN) looks dicey, making traders wonder whether they should buy or sell. The recent bias was bullish but the price has been coming down since last month. The trend has turned bearish in the short-term.

In the chart, 4 EMAs are used and they’re EMAs 10, 20, 50, and 200. The color that stands for each EMA is shown at the top left part of the chart. The price has crossed the EMA 50 to the downside; plus the EMAs 10 and 20 are sloping downwards. Sure, day traders and swing traders could short this market, aiming for short-term gains.

However, position traders may not short the market until there is a Death Cross, i.e. the EMA 200 is breached to the downside. If the price fails to breach the EMA 200 to the downside, then it could be the beginning of another long-term bullish journey.

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