Thursday, October 17, 2013

Is Royal Mail a Sell Candidate?

Royal Mail (LSE:RMG) has become a hot cake in that it offers investing possibilities to interested ones. However, a closer look at the current price action suggests that bearish attempts cannot be overruled. 

Generally, the bias on the chart is bullish. The price is now in a sort of consolidation, while the RSI period 14 shows the buyers’ determination to push the price upwards. It is thus possible that the price break above the Upper Trendline, as the RSI trades higher. Should this happen, the price may go towards 1380 within the next several months. Should the price break the Lower Trendline to the downside, and the RSI crosses the level 50 to the downside, the price would drop towards the support level at 180.

Conclusion: This stock would possible go up. There are no guarantees. We triumph in the markets since we know how to handle unpredictability as possibilities instead of looking for guarantees. Trading principles that control risk are welcome; for where there is no risk, there is no possibility of gains.

This forecast is ended with the quote below:

“Who cares if you make a bad decision, just make one! If you are wrong, you’ll learn from it and make a better decision the next time.” – Joseph Fahmy

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

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