The
company stock of Centamin Egypt
has broken out to the upside - outside of a prolonged consolidation. It is
likely that the price would continue to go up as the analysis below shows. The
chart below utilizes daily candles (24-hour candles). Based on criteria it is
often noticed that signals on the 24-hour time horizon are more significant
than signals on smaller time horizons.
Technical Forecast
This
company stock (LSE:CEY) was actually bearish recently. After a spell of the
bear market, the market entered a frustratingly protracted consolidation phase,
especially starting from April 5, 2012. Until July 25, there was no clear
victory between buyers and sellers. Then on this very day, the price rose from
a low of 56.6, and the stock was trading at 69.05 at the time of writing this
article. Technically, the ADX 14 and the MACD (default parameters) are used for
this analysis. The MACD histogram is already above the zero line, while its
signal line has almost crossed the zero line to the upside. The ADX itself,
while confirming the recent sideways movement in the price, is showing further
weakening of the market pressure. What is available on the price chart shows
that we currently have a Convergence Pattern on it. This happens when sellers
are getting tired of their wrestling against buyers. As the strength of the
trend weakens and the MACD threatens to start going up, it shows that the bear
pressure has thinned out.
Albeit
the contemporary price market conditions are different, the dread, fright,
emotions resilience has been constant as far as speculators are concerned. Yesterday
the price went above 70.4 level but the price was pushed down. We should note
that this is no big deal since a price does not go in a straight line. There
pullbacks in a bull market as well as rallies in a bear market. Yesterday
formed a candlestick pattern called an ‘inverted hammer’ whereas today shows a
‘hammer’. What is happening today means that further southward plunge has been
rejected as the price is poised to continue moving up - despite all. It would
have to push through the supply levels at 69.50 and 70.00 before going up
further. The demand levels at 68.50 and 68.00 could inhibit bearish attempts.
Conclusion: Speculation is closely
related to accumulation and distribution. Decreasing accumulation portends that
decreasing distribution could impact the market. What is more preferable here
on Centamin Egypt
stock is increasing accumulation and decreasing distribution. It is one way of
seeing significant move. Each market speculator would usually look for a bias
and chart pattern, yet it ought to be in agreement with the reality on the
chart. No price is too expensive for bulls, even if analytical tools are
telling so, though it could be extremely low to be smoothed according to its
innate characteristic.
This article is ended with the quote below, which is from
one of the most experienced traders alive today:
“Instead of
reacting with stunned paralysis, the winning trader views unfavorable market
conditions as a learning opportunity. It is a time to gain more market
experience. The optimistic trader objectively studies the markets, trying to
understand how the market moves and why. It isn't a time to be stuck, but a
time to think creatively and sharpen trading skills. It's at times like these
that it's time to stand up and cultivate a fighting spirit.” - Joe
Ross
NB: You would be
exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Copyright (C) ADVFN PLC
For more articles, go to: http://www.advfn.com/newspaper/technical-analysis
NB: If you want
to receive permanently free winning Forex trading signals, please send me an
email titled: “A Request for Free Trading Signals.”
No comments:
Post a Comment