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Tuesday, December 3, 2013

Things to Remain Downbeat on Touchstone


Touchstone shares (LSE:TGL) have been falling and things would remain downbeat. The price has been trending downwards for most past of this year, losing thousands of points along the way. The price would have a leg down, show some stabilization, and then show another leg down. Any reversal formations on the charts have been transitory in nature – traps to the unwary bulls. 


On the chart above, the ADX period 14 is almost above the level 60 (showing a very strong trend), while the DM- is far above the DM+, which means the bears have upper hands. In addition, the MACD (default parameters) have both its signal lines and histogram below the zero line. This is a clean Bearish Confirmation Pattern on the chart. Sell to 0.1!

Conclusion: Touchstone has not shown any sign of a truly bullish market and therefore, things are supposed to remain downbeat. Should one buy by mistake here, one would need to smooth the orders quickly. Victorious market players know how to admit it whenever they are proven wrong in the market.  Those who refuse to do this would end up having average losers that are much bigger than average winners.

This forecast is ended with the quote below:

“Many traders want to start their trading career by achieving big profits with a small trading account… In trading they have to deal with the real risk of losing money.” – Jens Klatt

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lesson from Expert Traders


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