Aminex stock (LSE: AEX) is wrapped in valid optimism right now. The price has constantly found a bottom around the accumulation territories of 4.00 and 3.50. Since those accumulation territories are too strong for the bears, the price would eventually go up.
The price is below the EMA 21 and the Williams’ % Range period 20 is in an oversold situation. Honestly, this shows a bearish signal, but the signal is invalid. The reason is that, recent historical data supports the fact that there are some strong barriers to bearish threats around the market territories at 4.00 and 3.00. The only thing that can render the bullish expectation invalid is a condition in which the price breaks the accumulation territory at 3.00 to the downside and trade lower. With this not happening, the price would go upwards. Yet, studies reveal that, in most cases, very cheap stocks tend to go upwards with less bearish possibilities then very expensive stocks. Precise gains cannot be prognosticated. It is known that speculators’ confidence is very low during bad fundamentals and when the headlines spread dismal sentiment. As a result of this, it is common for most shares to be very attractive (being favorable to buyers) when the markets still remain bearish.
This article is ended with the quote below:
“The same investors who ask “How was last month” are the same ones who quit. Successful trading is a marathon. It is never easy. If it were easy everyone would be rich and we know this is not the case.” – Andrew Abraham
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
For more articles, go to: http://www.advfn.com/newspaper/authors/azeez-mustapha
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