Koovs shares (LSE:KOOV) were bullish from March till the end
of July 2016, allowing a clean Bullish Confirmation Pattern to be formed in the
chart as depicted by the indicators mentioned below. However, something is
currently happening…
The ADX period 14 is below the level 20, while the DM+
remains above the DM-. This means that the indicator still gives a bullish
signal, which is not currently strong. The MACD, default parameters, has its
signal lines above the zero line, while its histogram is already below the zero
line (even the signal lines are sloping downwards).
What does this mean? It means that while the bullish signal
is in place, the MACD and the ADX are giving mixed signals: weak momentum
coupled with increased bearish activity. Should the MACD signal lines cross the
zero line to the downside, and the ADX DM+ crosses the ADX DM- to the downside,
there would be a “sell” signal.
Should anything happen on Koovs contrary to what is
explained in the preceding paragraph, the Bullish Confirmation Pattern in the
chart would become clearer.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Super Trading Strategies: Super Strategies
Buy and sell Neteller here; get funded quickly: www.ituglobalfx.com.ng
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