Cupid shares (LSE:CUP) are weak shares as the fact in this piece reveals. The bear is very happy right now because the market environment is favorable to him. When the cross-eyed bear squints, paradoxically, you know it is in a great ecstasy.
On the chart, the ADX period 14 is almost above the level 50, while its DM- is far above its DM+. Meanwhile, the MACD (default parameters) has both its signal lines and its histogram below the zero line – the signal lines are far below the zero line. There is a very strong Bearish Confirmation Pattern on the chart; go short on this market. Any short-term rallies in this market would only proffer unique opportunities to go short at better prices.
Since the year 2012, Cupid has been in a downtrend and it would be sensible for the trader to follow suit. You see when trading, there would be periods of roll-downs and breakeven performances, and that one does not mean that following the line of the least resistance is ineffectual.
This article is ended with the quote below:
“Trend Following is not dead. At best, trend following is sleeping and
no one rings a bell when markets take off. While past performance is not necessarily indicative of future results some trend followers outperformed the world’s greatest investor and if one was a contrarian thinker now is an interesting time to consider trend following as a strategy.” – Andrew Abraham (TRADERS’ February, 2013; www.tradersonline-mag.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
For more articles, go to: http://www.advfn.com/newspaper/authors/azeez-mustapha
No comments:
Post a Comment