From February 2014 to the end of May 2014, Wal-Mart (NYSE:WMT)
was in a bullish bias. From the beginning of this month until now, the bias has
become significantly bearish. This comes as a result of some panic selling, which
has made the stock skydive.
Yes, the bears are pushing the price southwards and this may
continue longer than is thought. The ADX period 14 has its line above the level
30, which shows a strong bias. The DM- is vividly above the DM+, which means
the sellers have an upper hand. The MACD (default parameters) has both its histogram
and signal lines below the zero line. This is a Bearish Confirmation Pattern,
and therefore long trades are no longer sensible. Some biases are novel and
some have been confirmed. This bias is relatively novel, and as well as
confirmed.
It pays to trade only what you see, according to your trading
methodology, and resist the feeling that you can predict tomorrow. This is a
type of market in which the bear makes money – though a novice may only feel
panicky. With the right guidance, you can learn the proper approach in this
type of market. Some mentors out there can help. Truly, an instructor that
could do everything to help you be a profitable trader is quite worth the
effort.
This forecast is ended with the quote below:
“You have to accept that quality comes before quantity especially
on the stock exchange – and many trades does not equal success.” – Dirk Stiller
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
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