Thursday, October 9, 2014

Buying Pressure Makes Bahamas Petroleum Shares Look Attractive

Bahamas Petroleum shares (LSE:BPC) looks very attractive to buyers as a result of the buying pressure in the market. Even if the price gets corrected southwards, it would eventually rally and break more and more supply levels to the upside.

Recently, the price has formed a strong base after it experienced a sharp drop. The base – which held out for a few weeks – resulted in a serious equilibrium phase. In September 2014, price shot skywards from the base, testing the supply level at 5.00 before going downwards again. The price must go above the upper Trendline so that the bias can continue to be logically bullish (a movement below the lower Trendline would also mean a new southwards outlook). The RSI period 14 has bounced off the level 50, pointing further upwards.

The worst thing that may potentially happen to the price of Bahamas Petroleum shares is to test the demand level at 2.00, because the price would often rally after or before testing the demand level. The market may continue going upwards until it reaches the supply level at 6.00.

This forecast is ended by the quote below:

"It's better to take a more realistic, practical approach to trading. It's vital to be a realist." – Joe Ross 

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

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