Wednesday, August 6, 2014

Afren Gaps Down Massively – SELL

Afren stock (LSE:AFR) has now become hopeless against the bears. The price gapped down massively recently, rendering any bullish hope and outlook useless.

The market was in a tight consolidation – a cutthroat struggle between the bulls and the bears – for a few months. But at the end of July/beginning of August, 2014, the market gapped downwards significantly. This is a serious breakout in the direction of sellers. The price is currently below the EMA 21 and the Williams’ % Range period 20 is now in the oversold territory. Once again, the market is weak and it is supposed to go further south.  

Conclusion: Afren stock is supposed to continue going lower and lower, reaching the support levels at 96.0 and 95.0; although there could be transitory rallies during the journey. No long trades would be sought in this market until there is a Bullish Confirmation Pattern in the market. If you are misled by a spurious signal to go long, it would be OK as long as the sustained negativity would be far less when compared to the positivity that has been sustained in this bear market. Although trading is a skill that could be learned by all, not everyone would be disciplined enough to do what it takes to be victorious.

This forecast is ended by the quote below:

After all, aren’t traders and investors all predators to some extent? Eat or be eaten.” – Michael Covel

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

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