Lloyds shares (LSE:LLOY) are in a major downtrend, which has been in place since the last several months. Adamant buyers would have lost a lot in this kind of market, simply because they refuse to go with the flow of the market.
In the chart, 4 EMAs are used, and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown at the top left part of the chart. You can see that all the EMAs are sloping downwards, while the price goes further and further south.
Now the current upward bounce in the market is a trap – it is just a bullish correction in the context of a downtrend. While the price might retrace into the EMAs 20 and 50, the bearish bias is supposed to continue in the year 2016. The bearish outlook will be valid as long as the price does not cross the EMA 200 to the upside.
This forecast is ended by the quote below:
“Look for strategies that have a large number of trades. Seek strategies with hundreds of trades in their trading history – not dozens.” – Gianni Salerno
What Super Traders Don’t Want You To Know: Super Traders
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