From the beginning of 2013 till June, the stock was in a tight consolidation phase. Since June, there has been a northward breakout on the stock – something that has resulted in a clean Bullish Confirmation Pattern on the chart. Looking closely at the chart, it can be seen that the ADX period 14 is above the level 60, while the DM+ is clearly above the DM-. This shows the prevalence of buyers in what could rightly be called a buying pressure. The scenario is further confirmed by the MACD (default parameters), whose signal lines and histogram are both far above the zero line. However, occasional bearish pulls cannot be ruled out in the stock’s journey further north. There are accumulation territories around 1.20 and 1.1, whereas the price could go on towards the distribution territories of 1.8 and 2.0.
I would like to conclude the article with the quote below:
“Trading has advantages that make it superior compared with other jobs, but it also has its pitfalls. It can require you to work long hours, especially at the start of your career, but those times should become less frequent as you mature as a trader.” – Joe Ross
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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