lowtrade

[lowtrade]

EMXX

With the DMI indicator, which ever is on top, indicates the expected trend direction +/-. But what confirms that trend to actually move is the Black ADX line to turn up and move in the same direction.

So basically trend expectation is seen with the green DI+ or red DI-, but the black ADX triggers the actual trend to start! Until ADX moves up with which ever is on top; the price normally fluxes without actually trend. Just a expectation of it.

As for EMXX trend; long term is the positive base trend line will continue. Looking at the chart One should expect the present channel continue from 3 bottom bounces to a possible 5; before price reaches the base trend line. Then you need to pay close attention for the next run to start. If that happens you'll have the 3rd and last strong run long term. Because just like flags come in 3's, bump & runs do also.

Also I should note with bump & runs the price normally returns to the base line after run reversal. How long that take varies. Could happen fast or drag out over time like this one has.

So if one is a long term holder of any stock on it's 3rd B&R pattern, they should plan to take profits at the reversal of the 3rd run.

Short term is in the 2nd chart. Trade the channel from 1.00 to 1.15. With channel plays, one can rely on the 3rd bounce and possibly see two more if the top channel line holds on that bounce.

Looking at both short and long charts it looks like Mid NOV is where to watch for any new real run. At the end of the present channel hitting base trend line. I should note this does NOT indicate a run, only expected new main decision point within the long term chart. The price could break down there also. Depends on sentiment at that time. The phycology should be for a run, but nothing is ever a sure thing.