Synairgen Plc shares (LSE:SNG) are expected to generate a bearish signal as a result of the current price action, which favors bears. The market largely trended sideways from April to July 2020, when it rose steeply to test the distribution territory at 250.00.
After that, price met a stiff resistance around the distribution territory
and began to pull back gradually. The ADX period 14 is around the level 20, and
the DM- is almost crossing the DM+ to the downside. This means that while there
is currently low momentum in the market, bears are proving to the stronger than
bulls.
The MACD default parameters, has its histogram below the zero line, while
the signal lines are also trying to cross the zero line to the downside. Once
the signal lines cross the zero line to the downside (as it is expected), and
DM- is clearly below the DM + (ADX), then there would be a Bearish Confirmation
Pattern in the chart.
This kind of sell signal is expected on SNG and it can take price towards the accumulation territories at 150.00, 100.00 and eventually 50.00. That is the outlook for this year.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha
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