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.
Technical Forecast
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
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
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