CPP Group shares (LSE:CPP) are now favorable to
buyer. The price has broken upwards after a protracted sideways movement which lasted
several months following a bearish bias.
It can be seen that the price eventually broke out
of a protracted sideways bias – to the upside. Since then, the price has closed
above the upper Trendline, trading further north. The present massive pullback in
the price is merely an opportunity to enter long again. It should not be
forgotten that the RSI period 14 is above the level 50, which still confirms
the bull’s hegemony. The price could ultimately reach the supply level of 50.
The prospective bear can hurt herself/himself here. Could the cobra bite an
iron rod without hurting itself?
Conclusion: Long positions
on CPP Group would be favorable. Is this a blind assumption? No. Instead, it is
a chart analysis that reveals what only trained eyes can see and the reasons
for market actions. When you see the market moving seriously north as a result of
some positive fundamentals, long positions would be favorable on it. On the
other hand, should the market movement be determined by herd mentality or institutional
panic speculation, mean reversion techniques could be favorable.
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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