Tuesday, October 29, 2013

China New Gets a New Lease of Energy

China New shares (LSE:CNEL) have gotten a new lease of energy after a long period of hopelessness on the side of irrational equilibrium. On a lower timeframe shown below, the price broke upwards, following the recent trendless phase in the market and this is a beginning of a new uptrend. Whenever a trading instrument is caught in a strong bias it is more likely that the bias would continue to hold on.

On the chart, the EMAs, 10, 20, 50, and 200 are used. The color that stands for each EMA is shown on the top left side of the chart. The price broke upwards: the uptrend has begun. All the EMAs are thus acting as a great barrier to the bearish threats and also as a support to the bullish effort. The price could go upwards toward the resistance level of 10.500 within the next several months.  

Conclusion: China New is set for a long upwards journey, but there would be some pullbacks along the way. Rookies like to feel that they need to have a home run to make it big. You don’t have control over the markets, and you’re bound to sustain negativity sometimes. You can, however, develop a practical method so that negativity doesn’t have effects on you.

This article is closed with the quote below:

“Trading is a classic sport for individuals. You are a lone fighter and you are forced to deal with all the prominent aspects that lead to successful trading. Every trader will eventually realise that he needs a solid money management plan in addition to good analysis.” – Jens Klatt

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

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