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Legendary Investments stock (LSE:LEG) is about to perform better than the bullish run we saw in April 2016. The market has been in a trending mode since February 2016, though last month has been characterized by a bearish correction.
4 EMAs are used for this analysis and they are EMAs 10, 20, 50, and 200. The color that stands for each EMA is shown at the right hand side of the chart.
It can be seen that all the EMAs are sloping upwards, though the price is breaking through the EMAs 10, 20, and 50, going towards the EMA 200.
This is an interesting point because there cannot be a violation of the current bullish outlook unless there is a “Death Cross,” which means a condition in which the price crosses the EMA 200 to the downside.
It can be said that what the price is currently doing would end up enabling investors to enter the market at a better price when a bullish candle does appear.
In case the price crosses the EMA 200 to the downside, the signal would turn bearish, but right now, there appears to be a great bullish signal on Legendary Investments, which could make the price go upwards by more than 1000 points this year.
This forecast is ended by the quote below:
“The market spent almost all of 2015 in a neutral to down direction — that is — the market type was mostly sideways and quiet (volatility). So far, that has pretty much continued in 2016. These market types are about the hardest kinds in which to make money.” – Dr. Van Tharp
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