The outlook on Amerisur Resources (LSE:AMER) is no longer bright. This means the prospects are in favor of the bear. This is not the time when the price would go ballistic – not even in the near future. A broken calabash is definitely not fit for drinking pap.
Last month, the stock made some northward attempts, which were finally rejected at the supply level of 60. There are 2 Trendlines on the chart, and it can be seen that the price has broken the lower Trendline to the downside, closing below it. It is expected that the price would trend lower: the RSI period 14 has also crossed the level 50 to the downside. The price might eventually reach the demand level of 40.
Is a bullish reversal probable in future? Yes. Is it probable now? No. There is an issue of being excessively courageous when it comes to what traders understand and what they do not understand. Excessive courage is rampant among market analysts. When past analyses are taken into consideration, it would be found that an average analyst isn’t able to achieve a higher hit rate than an average trader.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
For more articles, go to: http://www.advfn.com/newspaper/authors/azeez-mustapha
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