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Wednesday, June 11, 2014

Octagonal Rises and the Bulls Are Happy

Octagonal shares (LSE:OCT) have been in a repulsive equilibrium phase for many months before the price started to make some bullish attempt. Although the recent consolidation was to the downside, the market was generally ugly.

There has been a bullish breakout in the chart; plus it is thought that the breakout would be sustained. The ADX period 14 is at the level 30, indicating a strong pressure. The pressure would become stronger when the ADX level rises further from that level. The DM+ is above the DM-, testifying to the bulls’ hegemony. Meanwhile, the MACD (default parameters) has both its histogram and signal lines above the zero line. This is a Bullish Confirmation Pattern in the chart and long trades are now recommended.

The price may reach the supply zone at 1.00. It may even breach that supply zone to the upside. At a point where traders think a price may be corrected, it may go further higher. This is an area where Smart Money goes long, thus driving the price further higher.

This article is ended by the quote below:

“When you see statistics with a great monthly gain, or a win rate for a month or two, you have to be aware that the population that the statistics is drawn from is not great. The probability of results being down to chance is a lot higher the fewer results there are. Getting good statistics and plenty of results is important for finding out whether systems work. I would caution over being wowed by statistics with a short lifespan, they may seem impressive but do not come up well against a robust test.” – Golden Member (Source: www.babypips.com)

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


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