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Wednesday, November 6, 2013

Metminco – A Bone of Contention


Metminco shares (LSE:MNC) are a bone of contention in that certain investors find it difficult to forecast the next price target. This is no wonder since the situation on the chart itself reveals the indecisiveness of the market. Thus whatever happens here would affect either the buyers or the sellers.  What affects the eyes is also what affects the nose; and that is why the nostrils pour mucus.


Looking at the chart, it would be seen that the intermediate trend on the chart is bearish (especially from the month of August 2013 till the present time). The price itself is under the EMA 21 while the Williams’ % Range is still below the level 50, showing that the market is not strong. This reality does not rule out the possibility of the price going upwards, but a bearish breakout is much more likely.

This market shouldn’t be a bone of contention. It is amazing that some so-called professionals have a strong opinion when it comes to the direction of this market. It could go up or it could go down. That is the fact. When it goes against us we smooth our orders, and when it goes in our favor we ride our gains. Ability to change your opinion when things are obviously against you is a factor in your survival as a market player. It is regretful to see some people holding on to their loss as a result of a rigid opinion, even when reality is against them.  

Conclusion: No matter where Metminco shares go, we would either survive or make gains. The way you use your lot sizes determines how you will meet your objectives and survive where most other crash. We are happy no matter what the markets do, knowing full well that our risk is under control.

“The thinking you brought into trading is not the thinking that will make you successful.” – Rande Howell


Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


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