Diageo
shares (LSE:DGE) are expected to rally, following the current rejection at the
support level of 1750, which is already a formidable floor (barring further
bearish effort).
The
adamant floor was tested in May and June 2015, but further bearish attempts
were foiled. This same support level has been tested recently and we can see
that further bearish attempt is being rejected again. While the RSI period 14
is below the level 50 and the price is still between the Trendlines, a bullish
movement would be pinpointed once the price goes above the upper Trendline and
the RSI period 14 goes above the level 50.
This
is what is expected on Diageo, and the northward journey may hold till the end
of this year.
This forecast is ended by the quote below:
“Protective stop orders to the trader are as important as
the oxygen tank to the Astronaut in outer space. Without them, and proper use of them, you’re
in big trouble... On the emotion side of trading, I don’t feel any different
about a winning trade or a losing trade. Perhaps the fact that I have been
doing this so long is a factor but the reality is, I am simply executing a
profitable plan over and over and over. Small losses are just part of a very
profitable plan that does not allow for big losses.” – Sam Seiden (Source: Tradingacademy.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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