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Tuesday, May 19, 2015

Tern Consolidates to the Upside

Tern shares (LSE:TERN) are consolidating to the upside and this may eventually result in an upward break which may enable the price to accelerate further upwards.

In the chart, the ADX period 14 is around the level 20, confirming the consolidation phase. However, the DM+ is above the DM-, proving that the bulls have upper hands in the ongoing consolidation. The MACD default parameters, has both its histogram and signal lines above the zero line. The bulls have upper hands indeed. What we have in the chart is a kind of a confirmation of a bullish signal (sort of): so it is logical to conclude that when a breakout does occur here, it would be in favor of the bulls.

It cannot be said when the breakout would actually occur on Tern, but when it happens, the resistance levels at 15.00 and 20.00 would be reached this year

This forecast is ended by the quote below:

“If the risk of a worst case scenario is minimal – as it should be – it alleviates the stress of the situation and makes it much easier to make sound decisions.” – Darrin Donnelly

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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