Randgold Resources (LSE:RRS) has been in a clear downtrend.
From the year 2012; and so far in this year, this statement has been true. Any
rallies have proven to be short-term in nature, giving nice opportunities to go
short at dearer prices.
It can be seen that the EMA 21 has long been sloping
downwards on the chart – for a long period of time. As said above, it has
always been great to sell rallies in this market, and this time is very much adept
for that kind of strategy. In this month of May, 2013, the Williams’ % Range
has been going downwards from its monthly overbought region. The price is below
the EMA 21 (closing below it), plus the Williams’ % Range would still go below
the level 50 and go towards the oversold region. The next nearest target is the
demand level at 4500. However, it is possible that the price would cross that
level to the downside, going further downwards. This is the matter of the bulls’
loyalists and the bears’ insurgents. The bulls have been suffering in the
market, and the bears have been gaining upper hand. There is currently no end
in sight to this outlook.
This article is ended with the quote below:
“Find a
mentor. As much as I love trading, I could have saved myself years of
misdirection had I sought and found a successful mentor. I took timeless
lessons
about human behaviour and eventually made them my own, but to have a
teacher/coach helping set the path would have been a gift.” - Derek
Hernquist (Source:
www.tradersonline-mag.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders
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