There has been perpetual massive sell-off on Petropavlovsk shares (LSE:POG) and this is a scenario that is expected to continue. It is unwise to look for bullish signals in this market right now (the bull’s supremacy is non-existent). One only grimaces at someone one sees (otherwise one is suffering from a mental condition). What would other speculators assume and how could some gains harnessed in this kind of scenario?
On the chart, the ADX period 14 has its line around level 50, indicating strong bearish pressure. The ADX DM- is clearly above its DM+ counterpart, which means that the bears prevail. The MACD signal lines and histogram are also below the zero line. There is thus a Bearish Confirmation Pattern on the chart: so the price would go down further. It’s possible that the price would go down until it is clear that the bearish era is over. When a northward bias thins out, Smart Money loses interest in long positions – sometimes. If private traders fail to open further long positions (in a bullish market), then there is a loss in the northward determination as the price decides to nose-dive. This assumption is true of bearish markets as well.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
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