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The forecast below shows whether Tangiers Petroleum Limited (LSE:TPET) shares will plunge or not. When rifling through stock charts, I stumbled on this inimitable stock, which requires skill and experience to handle.
Technical Forecast
Irrespective of the large zigzag movements on the chart (caused by strong volatility arising from the battle between bulls and bears), the ring of truth about this market is that it has been in a bullish phase since October 2012. Here, 4 exponential moving averages (EMAs) are used. Their periods are 10, 20, 50 and 200. The color representing each moving average is indicated at the top left part of the chart. The major trend – as indicated by the EMA 200 – shows that the market has been in a long-term downtrend. Now the long-term downtrend is being threatened by buyers, and if this kind of scenario continues for a few more days, the sellers’ reign would be over. Earlier this month, it can be seen that the there was a northward price spike which attempted to go above the EMA 200, but failed to be sustained above it. Does this mean the end of the bullish phase? Certainly no. You can see that the EMA 10 is above the EMA 20, while the EMA 50 is below them all. This is a bullish confirmation signal.
What is happening right now on the market simply depicts an opportunity to buy a serious pullback in the context of a new uptrend. One may buy as the price touches the EMA 20 and decides to bounce up. There are great accumulation zones around 25.00 and 24.00, whereas there are weak distribution zones at 26.00 and 27.00.While approaching this market, short-termism would be of a little help.
Conclusion: Against the plunging possibility on Tangiers Petroleum, the market is expected to pick up and start rallying. How should speculators react to this forecast? What an average interested individual would do depends on their view of the market. Next year could see bullish pressure in the market as a result of some positive fundamental factors. Prior to taking a serious decision in this direction, nevertheless, the sane speculator would base his action on what the price does. No matter what the news says, it is what the price says that matters. This is because the effects of the news (whether in line with your expectation or contrary to your expectation) has already been factored in by the price. This is not a far-fetched fact. In every part of human endeavor, the most skillful people were not born with those skills, they acquired the skills.
This article is ended with the quote below:
“It’s the best traders, not the style, which make the most money.” – Nick McDonald
