Tullow Oil shares (LSE:TLW) are currently seen as a lure
that can make buyers go into a trap – as the current price action shows. The
market trended seriously downwards in the most part of this year. The market started
making some bullish attempts from October 2015, which has been rejected repeatedly
around the resistance level at 260.
The price went briefly below the lower Trendline in October
and went back into the space between the upper and the lower Trendlines. This
month, the price has gone below the lower Trendline again, as the RSI period 14
goes below the level 50. Clearly, the bullish attempts that were seen recently
were a lure that could entrap buyers.
Sadly, some buyers have fallen into this trap and they might
be sliced up along the way. The price action in the chart indicates that the southward
movement could be resumed in earnest. The support level at 150 could be tested
and breached to the downside. Should this happen, another support level at 100
would be tested.
This forecast is ended by the quote below:
“When I started trading, credit card interest rates were
20+% a year compounding, double digit unemployment was common, and if you read
the newspapers it looked like we were one step away from running out of oil.
Yet – somehow, great traders were made in that era. And they will be again.” – Louise Bedford
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
What Super Traders Don’t Want You To Know: Super Traders
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