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Wednesday, August 20, 2014

There Is a Sudden Bearish Confirmation Signal on Kea Petroleum

The bullish attempt on Kea Petroleum stock (LSE:KEA) came to an abrupt end as the price gaps down massively. This has led to a new Bearish Confirmation Pattern in the chart.

Following the strong gap-down, the ADX period 14 goes towards the level 50, showing that the current bias is strong. The DM- just crossed the DM+ upwards, meaning that the bears now have upper hands. Also, the MACD (default parameters) has just had both its histogram and signal lines below the zero line. To be precise, the signals lines are just crossing the zero line downwards. This is Bearish Conformation Pattern in the chart and a southward journey should resume from here.

Gap-downs or gap-ups that render the existing bias useless are no longer a curiosity. They happen now and then. To be honest, seasonality signals come repeatedly because of the constant habits of those who move the price. When you see a particular trading setup repeatedly, it means that market makers have left their footprints in the chart.

Kea Petroleum stock may continue moving further downwards, and we want to speculate only on the market that is prone to continue moving in a direction. Should a movement stall, we would not like to speculate.

This forecast is ended by the quote below:

“The more opportunities you have to trade your profitable system, the more money it’ll give you.” –Alvaro Echeverri 

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


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