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Wednesday, June 17, 2015

Is It Now Dangerous To Buy Cap-XX?

Cap-XX shares (LSE:CPX) have been trending downwards for the past several weeks, and further movement downwards in the next several days would result in a clean Bearish Confirmation Pattern in the chart.

The price went upwards significantly within the last days of April and early May 2015, but since then things have been getting bearish in the short term. The ADX period 14 is not too far below the level 30, meaning that the market currently has some momentum in it. The DM+ is below the DM-, which means that the bears are currently strong. The MACD default parameters still has its histogram below the zero line, plus the signal lines are also about to cross the zero line to the downside.

A close below the demand zone at 2.500 would result in a clean bearish signal and it would then be dangerous to go long here: unless there is a significant rally.

This forecast is ended by the quote below:

“Trading requires discipline. A trading plan is of little value if you abandon it prematurely. The disciplined trader executes a plan and controls his or her emotions until the plan comes to fruition.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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