Rare Earth Minerals stock (LSE:REM)
is on the rise. Soon, it would become the rise and rise, based on the chart analysis
explained here. The stock was recently
caught in some kind of bearish run which dragged on for several months. It was
a kind of consolidation to the downside.
Since August 2013, the price
broke above the EMA 21, closing above it and shooting skywards. The Williams’ %
Range period 20 has also gone into the overbought situation. This means that
the stock is under strong buying pressure. The price may reach the resistance
level of 0.60 eventually.
Conclusion: Why
is this the stock behaving like this? Irrational decisions do no pay when
trading is on. Alternatively, when people smooth their positions en masse out
of irrational dread, it portends the best long signal. Irrational fear is an
action that drives prices. It is likened to some wine that becomes tastier
after it is left to ferment. When people smooth their orders en masse, you
would usually see bearish moves. This bearish outlook can continue until it
becomes significant – something that makes immature speculators more fearful
and thus make further trading mistakes. This kind of herd mentality is what
gives a huge edge to the experienced bull.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders
No comments:
Post a Comment