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Regency Mines stock (LSE:RGM) has nosedived again while the major bias remains bearish. This means that the market has a high probability of going further south as the chart shows. Because of this, sane buyers offload their positions in a hurry.
4 EMAs are used and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is show in the top left part of the chart. The EMA 200 shows that the overall bias in the market is bearish. Even, a Golden Cross attempt was rejected last month, and this caused buyers to panic. Those who went long when the EMAs 10, 20 and 50 were sloping upwards had to smooth their positions in a hurry as the price gapped down recently. After all, the movement so far this month has been bearish.
This is a weak market and it would be prudent to short the stock and control the risk. While risk control prevents your portfolios from huge drawdowns, it is courageous prognoses that would make your rich. With a few more days of southward journey, the EMAs 10, 20 and 50 would confirm the ‘sell’ signal: the price may reach the support levels at 0.270 and 0.250 within the next few weeks or months.
This forecast is ended by the quote below:
“Your investment process is the tool that keeps you on track, making good decisions and avoiding bad ones.” – Bruce Bower
Learn from the Generals of the Markets: Market Generals
