Thursday, October 16, 2014

An Opportunity to Sell Emerges on Leni Gas

There is now an opportunity to go short in Leni Gas market (LSE:LGO). Although the market has been going upwards for the most past of this year, the recent bias has turned bearish and has rendered the dominant bullish bias invalid.

In the chart, the ADX period 14 is still essentially above the level 30, which means there is still momentum in the market. The DM- has almost crossed the DM+ to the downside, showing that the sellers have gained upper hands. For the MACD (default parameters), the histogram is already below the zero line; plus the signal lines are almost crossing below the zero line. Should this pan out eventually, it would lead to a Bearish Confirmation Pattern in the market. The price is thus expected to go further downwards, reaching the resistance level at 1.50 this year or sometimes next year.

This forecast is ended by the quote below:

“Opinions can change but the laws of supply and demand remain the same forever.” – Sam Evans

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

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