Nu-Oil and
Gas shares (LSE:NUOG) are supposed to resume its downwards journey, following
the current consolidation. This is another classical example of calm before
storm.
Price has
consolidated so far this year, except in June, when a bearish movement was briefly
witnessed. Since September 2018, a form of consolidation to the downside has
also been witnessed, and that means bears are still powerful.
The ADX
period 14 is slightly below the level 20, which means the momentum in the market
is not great. However, the -DI is above the +DI, which shows the power of
bears. The MACD default parameters, have its histogram and signals line below
the zero line. There is a sell signal in place.
That means
when momentum rises in the market, it would most probably favor bears, as the
market goes towards the accumulation territories at 0.80, 0.75 and 0.70,
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
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