Hurricane Energy stock (LSE:HUR) recently experienced a false bullish
breakout when the analytical tools in the chart didn’t support a bullish
breakout.
The situation in the market is currently dicey. The ADX period 14 is not
far from the level 20, which means there is currently no great momentum in the
market. The DMI+ is not above the DM- (both are at the same level).
Ironically, MACD default parameters, has its signal line below the zero
line; while the histogram is above the zero line. There are mixed signals in
the market.
When the ADX period 14 rises above the level 30, and the DM- is above the
DM+… When the MACD has both its histogram and signal lines below the zero line,
then we have a Bearish Confirmation Pattern.
In case a complete opposite of the preceding paragraph occurs, then the
signal will be bullish. Right now, the probability of HUR going further downwards
is higher than its probability of going upwards.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Trading realities: Trading realities
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