Emera - "Shifting" Support levels
Updated
After a Strong 'Bull Run' Emera gets its well deserved rest.
The price has formed a Triple Top pattern (Marked in Flags) which indicates a Selling Dominance. Also, the recent Candle patterns clearly suggest the presence of Selling
Coming to Trend lines, it's really a wonderful sight! The last Swing point of every Trend line, Neatly connects to the Next - like the Support level is being Transferred from one point to the other.
This indicates a Buying co-ordination from lower levels. In a setup like this, the Average of all the Trend lines could act as a Support, which comes around 56 level here.
But the Main Support is at 55 Level (Marked in Arrow). We could see that the price took One Whole month to break through this spot! So, when the price comes back down, we could expect a Halt in price drop.
The selling we see here is a good Short term price move, but it's too early to expect this price drop to topple the underlying Up trend.
The price has formed a Triple Top pattern (Marked in Flags) which indicates a Selling Dominance. Also, the recent Candle patterns clearly suggest the presence of Selling
Coming to Trend lines, it's really a wonderful sight! The last Swing point of every Trend line, Neatly connects to the Next - like the Support level is being Transferred from one point to the other.
This indicates a Buying co-ordination from lower levels. In a setup like this, the Average of all the Trend lines could act as a Support, which comes around 56 level here.
But the Main Support is at 55 Level (Marked in Arrow). We could see that the price took One Whole month to break through this spot! So, when the price comes back down, we could expect a Halt in price drop.
The selling we see here is a good Short term price move, but it's too early to expect this price drop to topple the underlying Up trend.
Note
Emera has now Successfully Closed below the Major Levels. Also, the price has now Closed Below the Trend line, indicating weakness. The candle patterns indicate the presence of Selling around the 55 Level, and the price cannot go back up over the Trend line. All of these signals point to the Selling dominance in the Stock, and we can expect the price to go down till 50 level.
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