Caza Oil and Gas stock (LSE:CAZA)
is vividly attractive, as speculators would see. This is not declared because of
a herd mentality, but because of a valid technical reason. Panic buying is
considered a bloomer, unless the reason for doing so is judicious. Do not chase
the markets – a dog must not chase a leopard.
Technical Forecast
On the chart below, we can see that the company price chart
was in a protracted southward bias prior to the current technical development
which makes the stock attractive. In the months of August and September 2012,
the market price found some adamant accumulation zones and found it impossible
to continue to nosedive gradually as it had done before. After some period of
indecision, there was a noteworthy northward breakout. The upward breakout
started in September and has continued till now. The Exponential Moving Average
(EMA) period 21, and the Williams’ Percentage Range period 20 are used on this
chart. This month, the Williams’ % Range reached the oversold region, i.e.
below -80, and then moved up sharply towards the overbought region, i.e. above
-20. This means that there could be some corrections on the chart before the price
continues upwards. Meanwhile, the EMA 21 is below the current price (this is
the same indicator that was trending downwards a few months ago). The EMA is
now heading upwards as the price remain above it – BUY!
The latest candle on the chart is seriously bullish: showing
the bulls’ supremacy. The price is now at 9.625, with resistance levels at
10.00 and 10.50. Immediate support levels are at 9.00 and 8.50. Even when your trading rules have
been clearly detailed, or you are trading according to a winning technique, you
would need to speculate just according to how the rules are laid out. It is a
fact that plans are easy to make but difficult to execute. Since you can also
make money from this market, it will do you little good to dwell on the things
you dislike about the market. Instead, get motivated by considering the benefits
that an attractive market like this one proffers.
Conclusion: When
a stock price is in a bullish mode the price goes up to form higher highs.
Alternatively, when a stock price is in a bearish mode the price goes down to
form lower lows. Caza Oil & Gas shares have good potential for investors
and traders, as gains are compounded from them and other attractive markets.
Decent gains are realized when sensible profits accumulate constantly. I would
prefer you to be a speculator who becomes wealthy slowly but steadily (as most
successful speculators have done). Compounding returns are highly satisfactory
in the long run, and this is one of the beauties of trading.
This article is ended with the quote below:
“Sometimes the
best setup goes wrong and you have to exit the market at your stop-loss
without hesitation… you have to be able
to control yourself to be able to control your trading.” – John
Netto
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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to receive permanently free winning Forex trading signals, please send me an
email titled: “A Request for Free Trading Signals.”
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