Hemogenyx Pharmaceuticals Plc (LSE:HEMO) traded in a prolonged decline below the 200-trade line from April to late August before sharply rebounding at the start of September to press toward the sub-1,200 resistance.
Despite the sharp surge in the stock operations toward the 1,200 threshold, warning signs are mounting as the move follows months of suppressed trading below the 200-trade line. Such abrupt spikes often precede exhaustion phases, leaving traders vulnerable to steep reversals. Without sustained confirmation above resistance, the current rally risks turning into a short-lived over-extension trap.
Resistance Levels: 1,200, 1,300, 1,400
Support Levels: 650, 550, 450
Could HEMO Plc’s Surge Below 1,200 Face Bearish EMA-Oscillator Divergence, Signaling Reversal Risks Ahead?
The surges in the Hemogenyx Pharmaceuticals Plc shares-offering firm may appear promising, yet the bearish EMA-oscillator divergence raises concern. Without sustained confirmation above 1,200, momentum risks fading quickly, exposing traders to possible reversal traps and heightened downside volatility.
The 15-day EMA continues to maintain positive traction above the 50-day EMA, reinforcing a bullish bias. However, with the Stochastic Oscillators northbound in the overbought zone, price movement may soon consolidate, and traders should remain cautious of potential pullbacks from exhaustion pressures.
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