In
most of this year, the price on Castle Street (LSE:CSI) has enjoyed a very sexy northward movement.
Indeed, buyers should have held this stock several months ago and as a result
of that get generously rewarded. It is
good to continue looking for opportunities to buy here, especially when the
price enters into a temporary consolidation phase.
The
price would rally, then consolidate, and then rally, and then consolidate, and
then rally, and then consolidate. This is the visible pattern in the chart. In
April, the price broke upwards, and in July, further upwards break was
experienced as the price broke above the support level at 35.00. At the same
time, the RSI period 14 also goes into the overbought territory. The price
would therefore go further upwards, as the movement is punctuated by occasional
pauses along the way. That does not mean the price will drop, but it means the
buyers would sometimes have to contend against the sellers before being able to
reaffirm their supremacy.
Some
wrongly think Castle Street will soon plummet, but we would be wise to trade
only what we see. Always remember: Hope
is rarely a good strategy
This forecast is ended by the quote below:
“If something goes wrong, you will as a trader have to
figure out the reasons for that, analyse and reflect them painstakingly and
then just carry on in such a way that things will work better in the future.” – Dr. Brett N. Steenbarger
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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