Iofina
PLC shares (LSE:IOF) are expected to continue going up from the upward breakout
that occurred on August 24, 2012. Brave speculators stand a chance to harvest
financial rewards from this market. The present price situation is testing the
courage of investors and traders, no matter the type of trading approach and knowledge
possessed.
Normally,
a market bias happens in retrospect. The analysis of a bias for today and
tomorrow is merely a game of possibilities. Yet, it is possible that the trend
will continue upwards.
Technical Forecast
The
stock had been trading in a tight range prior to the current bullish run. From
June 2012 the price started to consolidate to the upside, and the upside effort
turned into a bullish breakout, starting from August 24, 2012. This new bullish
trend has held its ground since then. For this technical analysis, Average
Direction Movement Index (ADX) period 14 and MACD (default parameters) are used.
The ADX 14 is above the level 40, showing that the current uptrend is strong.
It might even go to levels 50, 60 and 70. The ADX +DI is far above its -DI
counterpart - which shows a serious bullish pressure. Moreover, the MACD
histogram and signal lines are all clearly above the level zero. What we have
on this chart is a Bullish Confirmation Pattern. As long as this pattern is in
place, the market will continue to rally.
As
this forecast was being prepared, the stock was trading at 70. The nearest
support lines are 60.50 and 60.00, which are expected to check immediate
bearish attempts. The nearest resistance lines are 80.00 and 80.50, which are
expected to be violated as the bullish attempts continue. Though humans have a
far-from-perfect record when it comes to guessing the future, the probability
exists that this market would continue upwards. You would need to ride this
bullish trend for as long as possible. Do not be in a hurry to sell this stock:
haste is slower than patience.
Conclusion: The signal we have on
Iofina is BUY. 80% to 20% statistical possibilities are present in the
financial markets. Most of our gains are realized from a few winning positions
that are allowed to run. The colossal gains of a few positions are realized
from those who speculate indiscriminately on too many stocks and end up damaging
their portfolios. By picking your stocks carefully, you have a better
probability of having average winners that are bigger than average losers. You should bear it in mind that the type of
chart analysis used here shows that the northward pressure is bound to
continue. Having said so, this means that shrewd speculators may want to open
long positions only in the direction of the trend, trusting that the present
market bias will hold.
This
article is ended with the quote below:
“Trading for a
living involves more than getting in and out of the market at the right time,
and more than thinking about moving averages and indicators. Trading is a
business, not just a job, and every business in the world has to be managed.
Every business involves the managerial functions of organizing,
planning, delegating, directing, and controlling. If you, the trader,
are to perform these functions well, you must learn to practice self-discipline
and self-control.” - 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/authors/azeez-mustapha
NB: If you want
to receive permanently free winning Forex trading signals, please send me an
email titled: “A Request for Free Trading Signals.”
Send the request to: saazalmu@yahoo.com
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