Union Jack on Golden Cross – A Perfect Buying Opportunity

PUBLISHED: Jun 18 2014 @ 19:07 | Comments (0) | More info about Azeez Mustapha

The situation on the Union Jack stock (LSE:UJO) is very interesting; and it offers a unique buying opportunity for the bulls who missed the recent upward surge in the price.

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 left hand side of the chart. Historical data shows that the market was in a downtrend until the end of April 2014. Starting from May 2014, the price has resumed a serious bullish journey, spiking above the supply zone at 0.400. The EMAs 10, 20 and 50 adjusted themselves accordingly, sloping upwards below the price, while the EMA 200 acts as a barrier to the bears.

A Golden Cross happened on May 2014, as the price surged northwards. Right now, the price has experienced a deep bearish correction, which has been checked at the EMA 200 (which now serves as a barrier to the bears). A Death Cross was prevented as a new bullish engulfing pattern candle was formed: the bulls have become dominant again. This is a great opportunity to buy long before it is too late.

This price is supposed to rise up gradually until it reaches the supply zone at 1.000.

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