Afren Gaps Down Massively – SELL

PUBLISHED: 06 Aug 2014 @ 19:04 | Comments (2) | More info about Azeez Mustapha

Afren stock (LSE:AFR) has now become hopeless against the bears. The price gapped down massively recently, rendering any bullish hope and outlook useless.

The market was in a tight consolidation – a cutthroat struggle between the bulls and the bears – for a few months. But at the end of July/beginning of August, 2014, the market gapped downwards significantly. This is a serious breakout in the direction of sellers. The price is currently below the EMA 21 and the Williams’ % Range period 20 is now in the oversold territory. Once again, the market is weak and it is supposed to go further south.

Conclusion: Afren stock is supposed to continue going lower and lower, reaching the support levels at 96.0 and 95.0; although there could be transitory rallies during the journey. No long trades would be sought in this market until there is a Bullish Confirmation Pattern in the market. If you are misled by a spurious signal to go long, it would be OK as long as the sustained negativity would be far less when compared to the positivity that has been sustained in this bear market. Although trading is a skill that could be learned by all, not everyone would be disciplined enough to do what it takes to be victorious.

This forecast is ended by the quote below:

“After all, aren’t traders and investors all predators to some extent? Eat or be eaten.” – Michael Covel

Learn from the Generals of the Markets: Market Generals

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.