ADVFN may reach the low at 2.50 before bouncing upwards

PUBLISHED: 01 Apr 2014 @ 22:27 | Comments (4) | More info about Azeez Mustapha

ADVFN shares (LSE:AFN) are bearish: they may go further south until they reach the low at 2.50. Should that low (demand level) succeed in checking further bearish move, the shares may bounce upwards from there. Someone says bull markets are fun. I say bear markets are also fun, aren’t they? In bear market, short-sellers can enjoy the ride as they market gains.

In the chart, there are EMAs 10, 20, 50, and 200. The color that stands for each EMA is shown at the top left part of the chart. As you can see, all the EMAs indicate the current weakness of the market. It is not wise to go long now… until the price becomes even cheaper. Meanwhile, the bears are enjoying the ride.

Conclusion: ADVFN shares have been falling since early February 2014, but they may reverse at the aforementioned demand level. Should market players judge the fundamentals of a company as satisfactory, certain bulls may intervene and purchase the shares at a lower price, and this could halt further bearish plunge as the shares gain some stamina.

This forecast is ended with the quote below:

“So often, traders and investors that simply follow the news and fundamentals think that the current trend can last forever, but we all know that is not true.” – Nicholas Santiago

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