Wednesday, September 26, 2012

Create Resources Holdings: The Stock Is Bound To Rise

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

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Azeez Mustapha

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