Synairgen Plc shares (LSE:SNG) are expected to generate a bearish signal as a result of the current price action, which favors bears. The market largely trended sideways from April to July 2020, when it rose steeply to test the distribution territory at 250.00.
After that, price met a stiff resistance around the distribution territory and began to pull back gradually. The ADX period 14 is around the level 20, and the DM- is almost crossing the DM+ to the downside. This means that while there is currently low momentum in the market, bears are proving to the stronger than bulls.
The MACD default parameters, has its histogram below the zero line, while the signal lines are also trying to cross the zero line to the downside. Once the signal lines cross the zero line to the downside (as it is expected), and DM- is clearly below the DM + (ADX), then there would be a Bearish Confirmation Pattern in the chart.
This kind of sell signal is expected on SNG and it can take price towards the accumulation territories at 150.00, 100.00 and eventually 50.00. That is the outlook for this year.
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Azeez,
My friend you are obviously just reacting to charts, but seem to have missed the fact that Synairgen is sitting on big news, which when formally released will boost the SP. I don’t believe that the ii’s are piling millions into a share that’s about to collapse.
Kindest regards
Mustapha try harder …..
An interesting premise, but unfortunately only based on historic chart patterns! This approach takes ZERO CONSIDERATION of forward newsflow! Almost like reading tealeaves, but not taking account of expected future positive events. It would be very dangerous for a shorter to follow this pattern without and industrial sized supply of Aloe Vera, as you could get very seriously burned…
What a load of tripe.
you must have you head up your ARSE