Are Clontarf Energy shares (LSE:CLON)
around a significant supply level? Or is it rather a demand level? You might
read the forecast below in order to be intimated about the correct answer. Strictly
speaking, this is a velocity market. When
traders perform analyses and take trades based on them, it may seem as if they
are predicting the markets. No, they aren’t predicting the markets; they have
just blended with the markets.
Technical Forecast
For a long period
of time, the price had been consolidating lower and lower. In the months of September
and October, further bearish attempts were rendered useless, paving a way for
the bull’s reign. On November 12, 2012, a serious rally began. This became
highly significant as it topped at 6.375 on November 20, 2012. Currently, there
has been some correction in the price. On the chart, the Average Directional
Index period 14 and the MACD (default parameters) are used. The ADX line itself is almost above the level
50, showing a strong trend. The DM+ (green line) is far above the DM- (red line).
The MACD signal lines are far above the zero line, though it should be noted
that the histogram has come out below the zero line. This means that one might
not open long orders right until the histogram shows above the zero line again.
To answer the topic above, NO, this stock is not
around a supply level. Rather, it is around a demand level, and therefore, a
rise in the price is expected. When this article was being prepared, the market closed at 3.75. The
nearest accumulation zones are 3.60 and 3.50. Once the price breaks below the
accumulation zone at 3.55, it would signify a potential threat to the current scenario.
Do not forget that no-once can forecast the market with an utmost certainty. In
the current market conditions, the safety of your portfolio is as important as
the gains you plan to make.
Conclusion: A formidable
bullish expectation is awaited on the Clontarf Energy market. All the above
reasons being given, the shares ought to gather strength when they break new
distribution zones, or else, they might be caught in some range in the
near-term.
This article is ended with the quote below:
“Ultimately, we can say what was largely responsible for
my success was sticking to my overall strategy which had been developed as
early as the late 90s and specifically rules out buying in falling markets.
What makes me particularly proud is the fact that the majority of the rules
established then are still valid today, which means that the individual-stock
strategy has ultimately stood the test of time.” – Faik Giese (www.tradersonline-mag.com)
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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