Royal Bank of Scotland shares (LSE:RBS) has assumed
a new lease of an uptrend, which would enable bulls to collect many socks along
the way up, while bears lose their socks.
The market was recently in a downtrend, but further
downward movement was rejected in the month of December 2013, as the price
broke upwards. In the chart, 4 EMAs are used. They are EMAs 10, 20, 50 and 200
(the color that stands for each EMA is shown at the top left side of the
chart). A Golden Cross occurred last month, and the EMA 10 has crossed the EMA
20 to the upside. Both would cross the EMA 50 with the next few days. The price
itself would reach the supply zone at 400.00 this year, and possibly go above
it.
Conclusion: The fact is, no matter how courageous we
are, times come when we feel afraid inside. Unless one is afraid, it is
beneficial to take advantage of the current bullish signal on RBS (which is the
beginning of a long-term northward bias). It would also be beneficial to resist
risking too much. At one time, it was very difficult for me not to use big
position sizes, but now I’m not afraid to control my risk. Nothing beats going
to sleep while knowing your risk is always under control.
This forecast is ended with the quote below:
“The
more you can take a close, hard look at what you are doing right and what you
are doing wrong, the more you can adjust your trading methods and capitalize on
new market conditions. But taking an honest look is often difficult.” – Joe Ross
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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