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Tuesday, November 27, 2012

Rare Earth Minerals: Stay Out Of This Market


The best thing speculator can do on the Rare Earth Minerals plc. (LSE:REM) shares is to stay out of that market. As poignant as it seems, whenever the price rebounds upwards, it plunges precipitously. So be wary and remain safe. The crab makes use of its eyes when doing its self-employed sentinel job.

 

Technical Forecast

In no uncertain terms, this market has been in a bearish mode for too long – and there is no end in sight for this long-term development. Only a stickler for southward biases would make any meaningful returns out of this market. For this analysis, Exponential Moving Average period 21 and Williams’ Percentage Range period 20 are used. The EMA is constantly in a vivid downward trend, while the price remains below it. As long as the price remains below the EMA 21, failing to close above it, the market would remain unfavorable to buyers. The Williams’ % Range has constantly shown oversold readings: whenever the price headed out a little from the oversold region, it would fall back into that region. The current reading of the Williams’ % Range indicator is therefore not a bullish signal.

 

The price was at the level 0.0625 when this article was being prepared. There are supply zones at 0.0700 and 0.0800, while the demand zones at 0.0500 and 0.0400 could be breached to the downside as the present scenario continues. You need not feel antsy about this matter: simply stay away from the market. Staying aside is also a good position.

 

Conclusion: Rare Earth Minerals stock remains a terrible entity, until circumstances change, and there forms a clear bullish confirmation. Technical analyses show the realities in the financial markets. Whenever bulls dread the market negativity in the price and on their portfolios, the stock would definitely plunge. But if they are confident about what they are doing and send many long orders, the price may rise. In opposition to what many think – it would be difficult for this market to pick up – unless there are extremely favorable changes in the markets. There is nothing interesting here.

 

This article is ended with the quote below:

 

“…Simpler charts lead to better trading because of the smaller size of information stored and compared during chart reading. If you know and have experienced several times crossings of indicators and their averages at or very near zero, when this pattern occurs again, you are confident that the processing and decision will be almost instantaneous with a higher probability for success.” – Dan Valcu

 

 

NB: You would be exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com

 

 

Azeez Mustapha

 

Market Analyst, Trading Signals Provider and Coach

 

Copyright (C) ADVFN PLC

 


 

NB: If you want to receive permanently free winning Forex trading signals, please send me an email titled: “A Request for Free Trading Signals.”

 

Send the request to: saazalmu@yahoo.com

 

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