Investors are advised to ignore Goldstone Resources (LSE:GRL) shares until a clearer trading signal forms on its chart. One way of recognizing this is explained below. A difficult market requires a creative approach. It is a modern hound that is well suited to hunt a modern hare.
In the past several months, the trend on the chart has been bearish. Now it appears as if the price had found a bottom, and is poised to go up. There are currently mixed signals on the chart; something that requires investors to stay off the market. The ADX period 14 shows that the current trend is weak (though the DM+ is above the DM-). The MACD default parameters have its histogram above the zero line, whereas the signal lines are below the zero line. When would one buy in this market? One would buy only when the ADX line has gone beyond the level 30, as the DM+ is above the DM-. Then, both the signal lines and the histogram of the MACD should be above the zero line. At this time, there should have been a Bullish Confirmation Pattern on the chart. That would be the best time to buy. As stocks are owned by investors, they are not without those who own them, and whatever happens to them will affect their owners.
This article is ended with the quote below:
“If I have seen further, it is by standing on the shoulders of giants.” – Sir Isaac Newton
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