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Tuesday, April 23, 2013

Wessex Stock Comes Under Severe Bearish Pressure

Wessex Exploration stock (LSE:WSX) has come under severe pressure, following a period of indecision that lasted about 4 months (from December 2012 to March 2013). The stock poses a conundrum for buyers: looking for long opportunities while overlooking better shorting levels is like ignoring leprosy while paying attention to ringworm.

After some indecisive months that are mentioned above, the price broke down below the EMA 21 as the RSI period 14 goes far into the oversold region. The price is very weak and will continue to be so. It can go down as far as the demand level of 0.725, and any bullish effort is supposed to be temporary, since the market would fall down further from that level. This can bring significant profits for sellers; what continues to hold ceaselessly, can be magnified constantly. The price usually goes upwards or downwards following some pause in movement, albeit some analysts could be announcing a possible change in direction. In most instances, this would merely be some certain equilibrium phase prior to the time the price goes in the way of the dominant bias.   

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach



 

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