There is a Bullish Confirmation Pattern on Tower
Resources (LSE:TRP), though the current southward correction could make some
think that the price would plummet once again (since day trading bears could
make quick bucks here). However, as Clem Chamber once said: No one ever
criticizes madness when it is working in their favor.
Why this statement? It is abnormal to go short when
the price is clearly bullish. Instead, it may be better to buy long as things
go on sale in a bull market. There are 4 EMAs on the chart; EMAs10, 20, 50 and
200. The formation of the EMAs 10, 20, and 50 testifies to the bullish strength
in the market, whereas there has already been a Golden Cross when the price
crossed the EMA 200 to the upside and closed above it. There is now a support
line 2.00 while the price itself may go upwards towards the resistance line of
4.00 in the nearest future.
Conclusion: On Tower
Resources: The sly bull is looking for opportunities to keep on pushing the
price. The slow walking of a tiger is not due to fear; he is looking for his
food. There would be times when one grapples with flat performance and roll-downs.
When one’s gains are increasing quickly, one should remember that some drawdown
is nigh. Trading is risk management.
This forecast is ended with the quote below:
“Trading
[is] the journey into self-mastery.” – Rande Howell
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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