Northcote
stock (LSE:NCT) is virtually worthless as
it continues to lose value, going towards zero. Although some bulls see this
stock as a wonderful opportunity to go long at very cheap prices, the bears
would continue to fight for supremacy, and this may cause a considerable amount
of volatility. Speed + magnitude = volatility.
Markets
move randomly, and that is why they cannot be predicted, for they are
chaotic. For most part of this year 2015
(with the exception of April) the movement of the stock has been random, yet
the loss of stamina in the price is clearly visible.
The
ADX period 14 is at the level 20, showing a lack of momentum in the market. The
DM+ and DM- are also intertwined since there is no directional movement for
now. The MACD, default parameters, has both its signal lines and histogram
almost below the zero line (though not conspicuously). The situation on
Northcote is clearly dicey and it would be rational to abandon the market until
there would be a clean directional bias. For now, more loss in value is anticipated.
There
are times when things do not go in favor of the speculator, who can then
experience a huge negativity. It is then prudent to lose as small as possible -
for huge negativity must be avoided, if practicable.
This forecast is ended by the quote below:
“In professional trading, however, performance is not
determined by psychological
factors. Otherwise, trading strategies that are
implemented automatically by computers would be second to none.” –
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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