Goldplat Shares (LSE:GDP) are now
at a retail price: those who sell at the current price levels would realized
decent gains for their transactions. Inveigled bulls could enter this market at
their own peril, ignoring the fact the buying pressures are already occluded. The
shares are expected to plummet, either slowly or hastily, thought it does not
mean there cannot be intermittent fluctuations to the upside in the near-term
before the price resumes its southward plunge.
Technical Forecast
Until the end of
September 2012, the market was in an uptrend. But since then, it has been in a
downtrend. The market just continues
making lower highs and lower lows. On the chart, there are Trendlines and the
Relative Strength Index period 14. The Trendlines show that the market is in a
downward phase, while the RSI signifies a weak market by going into the
oversold region. The RSI could stay in that region for a long time (the bearish
outlook is valid for as long as the price remains below the level 50). The
price now stands at the level of 12.625. It is expected that the support levels
of 12.500 and 12.400 be breached downwards in due course, whereas, there are
resistance levels at 12.700 and 12.00.
The price is
really at a retail price – something favorable to bears. Someone who opens a
new short position could put their stop at 12.820. This person also might plan
to exit their position as soon as the price reaches 12.020. The only thing that
can make this outlook invalid is a situation in which the price attacks the
upper Trendline and breaches it to the upside, while the RSI 14 goes above the
level 50. As it is true of all trading methodologies, a point where you would
take your profit is crucial, especially in an attempt to have more gains than
losses. One needs to pinpoint the highest or the lowest amount one would hang
one’s hat upon. That is when one would know when to smooth a position.
Conclusion: There is no ‘buy’ signal on the Goldplat plc
market: what we have is a ‘sell’ signal. I know that, by saying this, I won’t
be the favorite analyst for this week. However, we have successful career in
the world of speculation when we respect what the price is doing. That is when
we will enjoy happy and successful career.
This article is ended with the quote below:
“In my opinion, hard work in combination with a certain
humility vis-à-vis the market, is the best recipe for success… However, I can’t
imagine leading a life without trading
being the center of my professional activity. I just live to trade!” – Faik Giese
NB: You would be
exposed to world-class, cutting-edge, and top-notch trading experiences here: www.advfn.com
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Copyright (C) ADVFN PLC
For more articles, go to: http://www.advfn.com/newspaper/authors/azeez-mustapha
NB: If you want
to receive permanently free winning Forex trading signals, please send me an
email titled: “A Request for Free Trading Signals.”
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