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It is more probable that Edge Resources (LSE:EDG) shall drop to the support level of 3.0 eventually, even breaking below it. This is a great possibility, for it is not uncommon for the price to sometimes drop like a stone, breaking the so-called psychological demand levels.
On the chart, the price is under the EMA 21 and the Williams % Range period 20 has long been in the oversold territory. The current upward retracement in the price is a trap for buyers. This is simply a fleeting increase in the price when the major bias is bearish. It is better to sell short at this time or when a major resistance level, say 7.00, is tested. Do not fear the bulls’ machinations here. The market is bearish. Be steadfast and conquer your fears.
Conclusion: It would be a false expectation to think the price on Edge Resources shall turn bullish right now. The root of the trader’s problem is broken expectations; if not dealt with, they mature into anger and bitterness. During a winning streak it is easy to think that it will continue forever and we will often be exposed to the good side of trading. But the markets have ways of breaking those expectations.
This forecast is ended by the quote below:
“A realistic plan will make you a winner. But that’s only half of it. You also need training, practice, and experience. When you combine all these factors into a long-term strategy for success, you’ll become one of the few traders who have mastered the markets. The more calmly you’ll trade, and the higher will be your chance of maintaining profitability.” – Joe Ross
Eye-opening trading lessons: Lessons from Expert Traders
