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Royal Bank of Scotland shares (LSE:RBS) has assumed a new lease of an uptrend, which would enable bulls to collect many socks along the way up, while bears lose their socks.
The market was recently in a downtrend, but further downward movement was rejected in the month of December 2013, as the price broke upwards. In the chart, 4 EMAs are used. They are EMAs 10, 20, 50 and 200 (the color that stands for each EMA is shown at the top left side of the chart). A Golden Cross occurred last month, and the EMA 10 has crossed the EMA 20 to the upside. Both would cross the EMA 50 with the next few days. The price itself would reach the supply zone at 400.00 this year, and possibly go above it.
Conclusion: The fact is, no matter how courageous we are, times come when we feel afraid inside. Unless one is afraid, it is beneficial to take advantage of the current bullish signal on RBS (which is the beginning of a long-term northward bias). It would also be beneficial to resist risking too much. At one time, it was very difficult for me not to use big position sizes, but now I’m not afraid to control my risk. Nothing beats going to sleep while knowing your risk is always under control.
This forecast is ended with the quote below:
“The more you can take a close, hard look at what you are doing right and what you are doing wrong, the more you can adjust your trading methods and capitalize on new market conditions. But taking an honest look is often difficult.” – Joe Ross
Eye-opening trading lessons: Lessons from Expert Traders
