Adsense

Wednesday, April 9, 2014

Sefton Resources shares to remain hopeless

Sefton Resources shares (LSE:SER) are hopelessly bearish, and they are expected to continue being so. For the past several months, the market has done nothing except to consolidate and trade further south in a slow and steady manner.

The ADX period 14 shows a lack a momentum: it is below the level 20. The DM+ is below the DM-, testifying to the bears’ domination. The MACD (default parameters) has its signal lines and histogram below the zero line. There is a clean Bearish Confirmation Pattern in the chart. The bears are happy with this kind of scenario, and the bulls do not overreact - the hard wood does not produce sap. The bulls know the price cannot go down forever.

Conclusion: Sefton Resources may go as low as 0.100 or 0.050 before it turns upwards. Whatever the market does, we are ready to take advantage of it. You see, the easier a trading approach is, the more quality the signals and that would be much OK. We are indifferent to both negativity and positivity. With this kind of market condition, you would need to adopt a trading style, optimize it and follow it religiously.

This forecast is ended with the quote below:

“There’s no reason to fear risk. Well perhaps there is, but far less than we subconsciously think. In fact risk equals opportunity, as without uncertainty financial markets wouldn’t exist in the first place.” – Dirk Vandycke

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Eye-opening trading lessons: Lessons from Expert Traders


No comments:

Post a Comment