Urals Energy shares (LSE:UEN) had always been a
hopeless equilibrium market. For most part of this year, the market has been
moving in a very tight consolidation, until the price rallied massively at the
beginning of October 2014. Some people may call that a spike.
In the chart, the ADX period 14 is above the level
40, showing a strong trend. The DM+ is still above the DM-, meaning that the
bulls are still in control despite the current bearish retracement. The MACD (default
parameters) is a kind of giving a ‘short’s signal, but when it gives a ‘buy’
signal, there would have been a Bullish Confirmation Pattern in the chart, as
the indicator works alongside the ADX period 14. By then, the MACD signal lines
and the histogram would have gone above the zero line.
The price got corrected downwards after the spike,
almost reaching the aforementioned strong base. It is not expected that the
price would go below the base, which is around the demand zone at 4.000, for
the base is a morbid hindrance to the bears’ attempts. Instead, the price is
expected to rally from that base, going towards the supply zone at 13.000 ultimately.
However this can take many months or a few years.
We want to go long in bull markets and go short in
bear markets. Therefore, we don’t care what the fundamentals do. We care only
for what is happening in the chart. When price is rising in the chart, why should
we go short because the fundamental figures say so?
This forecast is ended by the quote below:
“Even a trade with a profit probability of 90 per cent
can result in a loss.” – Falk Elsner
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
No comments:
Post a Comment