Tuesday, November 12, 2013

African Potash – A False Breakout?

There has been a significant northward breakout on African Potash (LSE:AFPO), following an exponential rise in the market, as seen on the chart. The bulls have been goosed into action, and the price may be trading above the distribution territory of 3.00 soon thereafter. 

The price broke out of the upper Trendline, and closed above it. Is this a false breakout? Not likely, because the RSI period 14 itself has nosed above the level 50. This is therefore, a beginning of a long-term bullish journey.

Conclusion: On African Potash, as long as the price is above the demand zone of 2.00, the bullish breakout remains valid. Analyzing this kind of stock would bring out outcomes: Your prognosis may be correct and you must be disciplined enough to follow your rules. Should you fail to have confidence in your approach to the markets, you have already flopped before making any attempt. This is obvious when things are going contrarily to one’s expectations.

This forecast is ended with the quote below:

“The key is to find one expert who you can really trust. Make sure they have earned your trust. Make sure they’ve helped others achieve great results. You don’t want them ‘learning’ with you as a guinea pig.” – Louise Bedford

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders

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