Phorm Corporation shares (LSE:PHRM) is a bear market
and it would remain so for some time to come. The recent bullish run peaked in
September 2014, after which a bearish bias started. Therefore, the last near-term
rally that has happened in this month is a good opportunity to sell short and
ride the market downwards.
We are not always sure of the validity of our
decision when we want to join a new directional movement, but our bravery is
often rewarded. Price has gone into the Trendlines and a break below the lower
Trendline would mean a sign of the renewal of the bearish outlook. The RSI period
14 is below the level 50, and as a result of this, the only logical thing to do
is go to short. Price may reach the accumulation territories at 10.10 and 9.00
very soon.
A directional outlook cannot hold out indefinitely.
At last, the outlook ends and as it is always is, and a new directional outlook
would start. But an existing directional outlook may last far more than the majority
of speculators may expect. Randomly picking tops and bottoms in the markets may
eventually backfire.
This forecast is ended by the quote below:
“To others, being wrong is a source of shame; to me, recognizing
my mistakes is a source of pride. Once we realize that imperfect understanding
is the human condition, there is no shame in being wrong, only in failing to
correct our mistakes.” – George Soros
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
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