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Wednesday, December 3, 2014

Fitbug Price Rises from a Strange Base

Fitbug Holdings shares (LSE:FITB) have risen from a strange base in a determination to go upwards. The base is called a strange base because it was ongoing for many months (an extremely tight consolidation), while price appears as dots in the chart. However, the current upwards breakout signals the end of the tight consolidation.

The ADX period 14 is now above the level 40, meaning the current bullish bias is strong. The DM+ is above the DM-, meaning that the bulls have upper hands. The MACD (default parameters) has both its signal lines and histogram above the zero line. This shows a Bullish Confirmation Pattern in the market and the only rational thing to do is to go long irrespective of the volatility and pullbacks in the market. Price may eventually reach the resistance levels at 30.00 and 35.00.

Even with a high hit rate, you would still need bravery and determination to go on during a short-term losing streak.  You do not need to quit because of a transient losing streak. Remember the day you decided to become a trader. The only thing we can do to become profitable is to truncate our losses and ride our wins. There is no better method for trading.

This forecast is ended by the quote below:

I have been in this business since 1994 so that I have my second decade anniversary now and I am always detecting the same behaviour.” – Dr. Emilio Tomasini

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals



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