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Tuesday, November 11, 2014

Central Rand Gold Experiences a False Breakout

The spike on Central Rand Gold stock (LSE:CRND) could mean a false breakout if the price is not able to keep on going north. There has been a strong sideways movement for several months, resulting in a strong base. During that period, the market was trying to consolidating to the downside: prior to the current strong breakout.

The false breakout reached the distribution territory at 35.00, before the current bearish retracement. The EMA 21 has the price already far above it as the Williams’ % Range period 20 starts its journey into the overbought area. Nevertheless, we need to proceed with caution. The price would be a real false breakout if the market fails to go above the distribution territory at 35.00. In that case, the price may hit the long-term base at the accumulation territory of 9.60 again; otherwise, we may see the start of a long-term northward bias, fuelled by relevant fundamentals.

Truth sounds like rubbish. This kind of market is difficult to trade because it could be a false breakout as well as the beginning of a new uptrend. Price actions come with stubborn challenges. How can we now keep trading challenges and setbacks from destroying our determination? Trading is a serious business; and Reginald Mengi says one of the secrets of success in business is to see problems as challenges and see opportunities in those challenges.

This forecast is ended by the quote below:

“Experienced traders know how to take losses and setbacks in stride. They don't mull over past defeats, or trading losses. They see a setback as an opportunity to improve their skills, and grow. They examine what they did wrong, learn from their mistakes, and view a temporary setback as a launch pad from which to achieve higher future performance” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals




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