Nanoco shares (LSE:NANO) are supposed to experience a stormy
decline, following a breakout from the currency base, which is an equilibrium phase.
The market has entered an equilibrium phase since February
2016. The more the equilibrium phase holds out, the more the possibility of a
stronger breakout.
A closer look at the RSI period 14 shows that it is
currently below the level 50, depicting a rise of bears. It can also be seen
that the price is almost below the lower Trendline. Further southward movement
is possible.
When a breakout to the downside happens on Nanoco, it would
take the price towards the demand zones at 35.00 and 30.00.
This forecast is ended by the quote below:
“This is
simple yet hard for millions to grasp: the stock market is nothing more than a
collection of opinions. Two companies with similar fundamentals can have vastly
different market capitalizations, and thus unequal and divergent stock prices.
An investing strategy based on buying stocks that are relatively expensive in
the short term spells disaster more often than not. In fact, the statement can
be generalized to investing strategies based on doing just about anything in
the short term. The same goes for using the movements in that mass of opinions
to make broad statements about the economy at large.” - Greg McFarlane (Source: Trade2win.com)
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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