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Wednesday, May 18, 2016

Strat Aero: A Falling Knife

Strat Aero stock (LSE:AERO) is really a falling knife, despite the current consolidation in the market. When there is a breakout in the market, it would be in favor of sellers, as shown in the price action below.

The price has been trending downwards since December 2015 till now. This is a kind of market that would trend downwards, consolidate a little, trend further downwards, and then consolidate a little. The price moved sideways in February and March this year, for example, and then began to move downwards.

We can see that the price has moved below the lower Trendline, at the end of March 2016. It came down in April and it’s now consolidating. As suggests by the RSI period 14, which is below the level 50. The most probable thing is for the price to trend down when momentum rises again in the market.

Strat Aero may test the accumulation territories at 0.8, 0.7 and 0.5, effectively becoming a penny stock.

This forecast is ended by the quote below:

“There are many characteristics and skills required by traders in order for them to be successful in the financial markets. The ability to understand the inner workings of a company, its fundamentals and the ability to determine the direction of the trend are a few of the key traits needed, but not one of these is as important as the ability to contain emotions and maintain discipline.” - Glenn Curtis

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

What Super Traders Don’t Want You To Know: Super Traders


Buy and sell Neteller here; get funded quickly: www.ituglobalfx.com.ng


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