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Monday, July 22, 2013

Providence Resources: Further Crash Expected

The volatile shares of Providential Resources (LSE:PVR) have invariably been involved in upswings, followed by far significant downswings. Right now, the price could experience another significant plunge after the recent massive gap-down.

Historically, it would be seen that any rallies in this market have been weak and the subsequent dips in the price have been noteworthy. From May to July, 2013, the shares rallied in a weak and tardy manner, and… a serious gap down occurred at the beginning of this week. On the chart, 4 EMAs are used; EMAs 10, 20, 50 and 200 (the color that stands for each EMA is shown at the top left side of the chart). It can be seen that all the EMAs support further bearish plunge. The price is trading below all of them, and so, it could dip further towards the accumulation territory of 420 within the next several months.

Note: Some people feel that the markets must move according to their own thoughts. When things go their way, they assume bigger stakes for they feel their good results have come as a result of their competence. Something like this is dangerous since in reality they are just fortunate that things go in their favor.

 “I have always believed that if you are defined by a number of successful trades, you’re not really a successful trader at all because you will soon be defined by the number of losses that you don’t really want to know about.” - David Chia (an interview with Louise Bedford)

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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