Bowleven shares (LSE:BLVN) are what I couldn’t risk my neck on. This is because the shares are not favorable to buyers, except sellers. The shares hit the yearly high in March 2013, testing the distribution territory at 100.00. From that territory, the price dropped seriously and consolidated around the latter part of May 2013.
In the latter part of May, there were deadly struggles between buyers and sellers, but sellers won as the price broke the lower Trendline to the downside, thus resuming its downtrend. Since the price closed below the lower Trendline, the RSI period 14 has gone towards the oversold territory. Should the price rally at this point, it would merely be an opportunity to sell short during this bearish outlook. We do not know when a reliable bullish signal would come in the market, for the extent of the seller’s determination is very strong and cannot be gauged. The nose is unreliable; otherwise it would smell the intent of adversaries.
This article is ended with the quote below:
Not only is it hard to pick stocks, you are also up against the most talented investors in the world. – Mebane Faber
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Ground-breaking lessons from expert traders: http://www.harriman-house.com/experttraders
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