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Tuesday, September 3, 2013

AFC Energy Shares to Nosedive


AFC Energy shares (LSE:AFC) may go further south, based on the price action which is currently on the chart. The market was turbulent in July 2013 and it traded downwards in August 2013. This outlook is expected to continue. 



Further bullish attempts were rejected in July, and since then the price has broken the lower Trendline to the downside. At the same time, the RSI period 14 went below the level 50. The price could eventually reach the support level at 30.00. The power of accumulation has thinned out, and therefore, long positions cannot be sensible, and distribution may push the price lower. As the price nosedives, short trades become vivid as bulls smooth their orders… which may result in transitory bullish correction. The price would go down again, and there would be corrections along the way. The corrections would be effected by bulls’ desperation (they try to open long positions which result in corrections). These retracements would be short-term, but their traces would be visible on the chart.

The forecast is ended with the quote below:

“If you cannot come into the day ready to accept both winners and losers and then move on, then do not go to work that day or do not trade.” – Greg Harmon

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: http://www.harriman-house.com/experttraders



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