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Tuesday, September 23, 2014

You Can Continue Holding Kibo Mining Shares and Get Kicked in the Butt

Kibo Mining shares (LSE:KIBO) are very weak, and they would continue to be weak. Unless one goes short, anyone who holds the shares, thinking things would soon go bullish, would end up being kicked in the butt. Most tend to think that all that matters is the correct picking of stocks, but you can be correct in your forecast and still sustain negativity. Kibo Mining is a good example of this.

The market is very volatile, with the sellers gaining the upper hands.  4 EMAs are used here – and they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown in the top left part of the chart. It can be seen that the EMAs are all sloping downwards, testifying to the power of the bears. The EMA 200 is a great barrier to any bulls’ machinations along the way, for the price would be bearish as long as it is below the EMA 200.  

Rallies have invariably been opportunities to sell-short when the price is a kind of high. For new sellers, constant selling opportunities are already existent in this market. Where we plan to plant a cacao tree, a cacao tree has grown there naturally.

While enjoying their gains, the sellers are always suspicious of what the buyers may do. The quail is so suspicious that it appears as though it had eyes all over its body.  Irrespective of this, the price may drop further, whether reluctantly or willingly, towards the accumulation territories at 1.87 and 1.85 successively.

This forecast is ended by the quote below:

“My old dad used to say, “All you need to know is whether the market is going up or down, the rest is just detail.” The best advice is always simple and the more it annoys the more likely it is to be useful.” – Clem Chambers

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals



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