BP stock (NYSE:BP) has broken out to the upside and
would continue going further north.
We want to buy when the trend is strong and stay
aside when it is not strong. When the trend in the market is unclear, one would
want to apply some filter so as to avoid bogus indications, which may cause fewer
indications but higher accuracy. When the uptrend is clear, we would seek long
trades only.
It can be seen that the price is making further
northward attempts after it broke out upwards. Trading above the upper
Trendline, the price has closed above the accumulation territory at 48.10. The
RSI period 14 is also above the level 50, and therefore it is logical to go
long.
Conclusion: BP could
break the distribution territory at 50.00 to the upside, while going towards another
distribution territories at 60.00 and 70.00. This, nevertheless, does not rule
out the possibilities of bearish corrections along the way. Any southward
corrections along the way may cause emotional reactions among market players
which could result in panic smoothing and deeper corrections.
This forecast is ended with the quote below:
“Not
trading in a methodical and tested system, but rather relying on emotion or a
must-win attitude to create profits, indicates the person is gambling in the
markets and unlikely to succeed over the course of many trades.” - Cory
Mitchell
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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