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Are Clontarf Energy shares (LSE:CLON) around a significant supply level? Or is it rather a demand level? You might read the forecast below in order to be intimated about the correct answer. Strictly speaking, this is a velocity market. When traders perform analyses and take trades based on them, it may seem as if they are predicting the markets. No, they aren’t predicting the markets; they have just blended with the markets.
Technical Forecast
For a long period of time, the price had been consolidating lower and lower. In the months of September and October, further bearish attempts were rendered useless, paving a way for the bull’s reign. On November 12, 2012, a serious rally began. This became highly significant as it topped at 6.375 on November 20, 2012. Currently, there has been some correction in the price. On the chart, the Average Directional Index period 14 and the MACD (default parameters) are used. The ADX line itself is almost above the level 50, showing a strong trend. The DM+ (green line) is far above the DM- (red line). The MACD signal lines are far above the zero line, though it should be noted that the histogram has come out below the zero line. This means that one might not open long orders right until the histogram shows above the zero line again. The indicators would have then formed a vivid Bullish Confirmation Pattern – as they appears below.
To answer the topic above, NO, this stock is not around a supply level. Rather, it is around a demand level, and therefore, a rise in the price is expected. When this article was being prepared, the market closed at 3.75. The nearest accumulation zones are 3.60 and 3.50. Once the price breaks below the accumulation zone at 3.55, it would signify a potential threat to the current scenario. Do not forget that no-once can forecast the market with an utmost certainty. In the current market conditions, the safety of your portfolio is as important as the gains you plan to make.
Conclusion: A formidable bullish expectation is awaited on the Clontarf Energy market. All the above reasons being given, the shares ought to gather strength when they break new distribution zones, or else, they might be caught in some range in the near-term.
This article is ended with the quote below:
“Ultimately, we can say what was largely responsible for my success was sticking to my overall strategy which had been developed as early as the late 90s and specifically rules out buying in falling markets. What makes me particularly proud is the fact that the majority of the rules established then are still valid today, which means that the individual-stock strategy has ultimately stood the test of time.” – Faik Giese (www.tradersonline-mag.com)
