It is expected that the Create
Resources Holdings stock (LSE:CRHL) will rise as explained below. Bears do not
have any chance here any more! It is high time sellers smoothed their positions
and changed their bias (or else they will be caught in a wrong direction). What
is bad news for sellers is good news for buyers: what is a cause of sorrow for
the farmer is the cause of joy for the partridge. Traders and investors
may now want to determine their goals on this market and reap rewards from it.
Technical Forecast
The
shares have been in a long-term downtrend; being perpetually bearish.
Technically, the Exponential Moving Average (EMA) period 21 and the Stochastic
default parameters are used. Recently, the price traded constantly under the
EMA 21, mixed with extremely tight ranging and short-lived rallies that were
followed by bearish continuations. But on August 14, 2012, it reached an
important accumulation zone around 0.475. After this, the price found it very
difficult to continued going down. In fact, what happened on August 14 was
rather followed by a new buying wave, and then some period of almost no
activities between bulls and bears. On September 21, 2012, the price crossed
the EMA 21 to the upside - closing above it. We can also see that the
Stochastic was completely in the oversold territory prior to this day.
This
is an auspicious time to go long on this stock. Do not be afraid of any
pullback in price. This is expected to happen because the Stochastic has jumped
into the overbought territory (as the stock may
yield to gravity in the near-term). Once the Stochastic heads down a
little or goes near the oversold area, it would jump up again. The longer the
price stays above the EMA, the stronger the northward bias is.
Conclusion: The reality is that Create Resources Holdings shares are bound to
rise. This is not a realm of fairy tale. I am not asking someone that
is suffering from a severe asthma to try to become a marathon winner when at
65. Can I bet my socks on this matter? What if other analysts start mocking me,
jeering at me, branding me a liar? Would I still have enough courage to stick
to my forecast? Do I have any evidence to support my claim? I repeat, based on
the analysis revealed above, Create
Resources Holdings shares are bound to rise. Time will tell.
This
article is ended with the quote below:
“In this business
you have to know exactly what you are doing.” - Merlin Rothfeld
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/authors/azeez-mustapha
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