Leni Oil & Gas stock (LSE:LGO) has become a kind of pay dirt for speculators. The market, which was in a vivid downtrend until recently, is now in a new and intriguing uptrend. The price aptly apes what is typical of valid northward reversals; as a large chunk of bears’ trail is lopped off.
As it was mentioned earlier, the market was in a downtrend until last week. Before this, the market was in an equilibrium zone, as marked by the two parallel trendlines on the chart. Last week, the price breached the upper trendline to the upside and eventually closed above it. Since then, the price has gone up significantly. It can also be seen that the Relative Strength Index (RSI) period 14 has long crossed the level 50 to the upside, and is now in the overbought territory. This is expected to cause the price to pull back temporary.
The price was at 0.82 as this article was being prepared. There are accumulation zones at 0.70 and 0.65; there are also some vulnerable distribution zones at 0.85 and 0.90. Normally, the market pressure increases in a bear market and decreases in a bull market. At times, however, an exponential bull market could also cause pressure to increase. Pluses and minuses of bearish and bullish pressures apart, the markets dynamic remain the same – just as they were, decades ago. Only that bearish or bullish pressure is more intense. Prices move significantly indeed. Despite the vagary of the financial markets, gains are made consistently by skilled speculators.
Conclusion: Speculation is essentially a probabilistic thing. Leni Oil and Gas shares offer a really good opportunity to go LONG. In other areas of human endeavors, certain programs, processes and actions usually produce predictable and calculable results. Such things that work in other areas of human endeavors might not be useful in trading. Yet, there are techniques in trading that work.
This article is ended with the quote below:
"The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading..."- Victor Sperandeo
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