The forecast below shows
whether Tangiers Petroleum Limited (LSE:TPET) shares will plunge or not. When
rifling through stock charts, I stumbled on this inimitable stock, which requires
skill and experience to handle.
Technical Forecast
Irrespective of
the large zigzag movements on the chart (caused by strong volatility arising
from the battle between bulls and bears), the ring of truth about this market
is that it has been in a bullish phase since October 2012. Here, 4 exponential
moving averages (EMAs) are used. Their periods are 10, 20, 50 and 200. The
color representing each moving average is indicated at the top left part of the
chart. The major trend – as indicated by the EMA 200 – shows that the market has
been in a long-term downtrend. Now the long-term downtrend is being threatened
by buyers, and if this kind of scenario continues for a few more days, the
sellers’ reign would be over. Earlier this month, it can be seen that the there
was a northward price spike which attempted to go above the EMA 200, but failed
to be sustained above it. Does this mean the end of the bullish phase?
Certainly no. You can see that the EMA 10 is above the EMA 20, while the EMA 50
is below them all. This is a bullish confirmation signal.
What is happening
right now on the market simply depicts an opportunity to buy a serious pullback
in the context of a new uptrend. One may buy as the price touches the EMA 20
and decides to bounce up. There are great accumulation zones around 25.00 and
24.00, whereas there are weak distribution zones at 26.00 and 27.00.While
approaching this market, short-termism would be of a little help.
Conclusion: Against the plunging possibility on Tangiers
Petroleum, the market is expected to pick up and start rallying. How should
speculators react to this forecast? What an average interested individual would
do depends on their view of the market. Next year could see bullish pressure in
the market as a result of some positive fundamental factors. Prior to taking a serious decision in
this direction, nevertheless, the sane speculator would base his action on what
the price does. No matter what the news says, it is what the price says that
matters. This is because the effects of the news (whether in line whether your
expectation or contrary to your expectation) has already been factored in by
the price. This is not a far-fetched fact. In every part of human
endeavor, the most skillful people were not born with those skills, they
acquired the skills.
This article is ended with the quote below:
“It’s the best
traders, not the style, which make the most money.” – Nick McDonald
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
For more articles, go to: http://www.advfn.com/newspaper/authors/azeez-mustapha
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