Last June 22, GLO entered into the oversold zone base on my customized indicator. As we are all aware, the stocks can be in the oversold (or overbought) zone for a longer time and GLO is one of the example for this. Aside from being in the oversold area, I spot Bullish Hidden Divergence on GLO, that is, Price is showing higher low while the indicators showing lower low as shown in the chart below. Divergence often warns of market turn. Will GLO finally reverse its trend? In addition, the candlestick today (July 7) is an inverted hammer, a reversal pattern though needs a bullish confirmation.
Please understand that the Trading Signal presented herein is for educational purposes only and should NEVER BE TAKEN as a RECOMMENDATION to BUY, HOLD, or SELL.
Here’s my Technical Analysis on GLO guided by the following questions:
STEP 1: Is this security in a bull or bear market in the short and long term?
Short-Term (price > MA20): Since Current price is below MA20, this indicates that GLO is Bearish on the Short Term. (-)
Mid-Term (price > MA50): Since Current price is below MA50, this indicates that GLO is Bearish on the Mid Term. (-)
Long-Term (Price > MA200): Since Current price is above MA200, this indicates that GLO is Bullish on the Long Term. (+)
STEP 2: Is the security trending or in the trading range?
ADX reading is at 24.49 means GLO is in the trading range.
RSI is below 50 but above 30; Stochastics is in oversold zone (+); MACD is below zero (-)
STEP 3: Who’s in control of the market – buyers or Sellers? Sellers (-)
STEP 4: Is the strength of the buyers/sellers increasing or waning?
NFB/NFS: -92M (-)
STEP 5: What price point indicates a reversal or failure?
fibo 50% level: 2380; fibo 61.8% level: 2299.76
Summary: Apparently, there are so many negative points compared to positive points on GLO as of this writing. It would be interesting to watch the 50% – 61.8% fibo level and the small gap on 2330.
What is your opinion about GLO?
Here’s the latest update about GLO from today’s leading analyst compilation courtesy of PinoyInvestor:
- Technicals Talk: GLO (7 Jul 2015) By First Metro Securities
GLO dropped to psychological support at