Leni Oil and Gas stock (LSE:LOG)
is currently at a very interesting zone.
The market has been in a very long-term trend as shown by the chart – something
that would have caused losses to buyers. Negativity is essentially not a
harrowing experience provided negative shares are sold; thus making huge
profits for speculators. Speculation is consistently favorable only if one
knows how to make gains from bull and bear markets.
Technical Forecast
As I said earlier, the overall trend is bearish, and it is
possible that the market could go lower (though a bullish breakout and rally is
expected soon). Even if the market falls any further, it will be on a
short-term basis. A long-term uptrend is
anticipated on this market, and it could happen anytime soon. Technically, 4 exponential
moving averages (EMAs) are used in this analysis. They are EMAs 10, 20, 50 and
200. The color that represents each EMA is shown on the top left of the chart
below. The EMAs, especially the EMAs 50 and 200, show that the overall bias is
down. A temporary bullish retracement could be an opportunity to open new sell
orders (though essentially on a very short-term basis). This means it is not
advisable to send buy orders right now, as one would need to wait for a confirmation
of a change in the trend before going long. When could one buy this stock?
The bullish candles that are forming right now are not an indication of a
change in the trend, in spite of the fact that the market appears to have
reached a bottom. A change in the trend
would be affirmed when the EMA 20 crosses the EMA 50 to the upside, while the
price closes above them. That would be the time to buy the stock.
The stock was trading at 0.445 when this article was being
written. You might prepare yourself for gong long here. This would make you
feel at ease as some novices languish from lack of experience. By opening
positions according to this technique, you make a decision that makes you grasp
with the unpredictable future while standing to be rewarded for your smartness.
This may tempt a neophyte to react in a puerile manner and go against the rules
of the technique. We all have emotions – and something pushes us to do what we
have determined not to do. It is not uncommon for us to force a trade against
our rules as a result of some expectation or retaliation. Please try not to do
this with this technique. It has been explained in an easy-to-follow way.
Conclusion: The Leni Oil and Gas market might continue falling, but it would be
temporary. Very soon, the stock will rise, and rise and rise – as diligent
investors and traders begin to smile. Market
wizards know there are only two ways in trading, either one sticks to a winning
technique or looks up his schedule to flops. But we are winners, and we will
exercise the kind of self-control needed to use this idea successfully.
Self-control takes effort, but the payoff is huge!
This
article is ended with the quote below:
“..As I have
witnessed many times before, shares frequently rise the most when everyone says
they can’t go any higher. The same applies to the short side. A stock has never
risen too far for a short-term trader a “bargain”. This would-be trading of
lows along with hopes of a trend reversal is seldom met with success, which is
why newbies in particular are usually doomed to fail when using such an
approach.” – Tim Bourquin
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
Open an account here: eng.fxclearing.ca/ib/915
No comments:
Post a Comment