GCM Resources (LSE:GCM) shares
currently evince some probability of a northward journey. Right now, the
bullish attempts might look desultory, but event on the chart would unfold as extrapolated
below.
Technical Forecast
We can say that
the historical traces of buyers and sellers could determine what might unfold
in a foreseeable future. Given the visual representation of the price, it would
be noticed that the price was going downwards before October 2012. In October,
the price was caught in a decisive equilibrium zone, which was marked by the
parallel Trendlines. A break above the
upper Trendline on October 22 proved to be a false breakout, because the price
could not close above that line. In November 2012, there was another determined
bullish breakout, but it was short-lived. The price stalled and broke below the
upper Trendline. Now, there was another decisive bullish breakout which occurred
on November 22, 2012 (which can be successful this time around). The price
closed above the upper Trendline; poised to go up. This assumption is also
supported by the fact that the Relative Strength Index 14 period is far above
the level 50 and is heading above the level 60. With all the recent upward breakouts, the
price has failed to go determinedly lower.
On November 27,
2012, the price on the chart closed at 38.75. This bullish attempt might go as
far as 44.75, but it would be assumed that this expectation is invalid, should
the price go below the support levels at 37.75, and especially, 36.75. Going
short in a bear market should be identical. Lurk till the market repairs beyond
the southbound moving line, then when the market starts to repair southward
again, and then a position is opened.
Conclusion: When GCM Resources stock goes on with its
perpetual northward bias, it would do so with unrestrained exuberance. Whether
the market gives us more gain than we anticipated or far less than that, we
must acknowledge that the market is always right. The conflict between reasoning
and emotion starts only when a speculator becomes subjective.
This article is ended with the quote below:
“Fear isn’t our friend. It disables us from moving
forward and causes us to shrink from doing what’s right.” – Joe
Stowell
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
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