Stay Away from Xtra Resources!

PUBLISHED: 30 Sep 2015 @ 16:11 | Comments (0) | More info about Azeez Mustapha

Xtra Resources stock (LSE:XTR) is currently a good example of a market that can bring losses to buyer and sellers because of the current equilibrium conditions on it. This is essentially a quiet market which may fool some players. Some may feel that a quiet market is less risky than a noisy one – this is false.

4 EMAs are used for this analysis and they are EMAs 10, 20, 50, and 200. The color that stands for each EMA is shown at the top left part of the chart. In a bull market, all the EMAs would be sloping upwards while the price is above the EMA 200. In a bear market, the EMAs would be sloping downwards while the price is below the EMA 200.

However, the EMAs on Xtra Resources Daily chart are all intertwined, giving no direction. Both buyer and sellers would be stopped out here: so it is better to stay away from the market until there is a directional movement, which would take the price upward or downwards by at least, 500 points.

This is expected to happen, as following a consolidation movement is a breakout that would start a brand-new bias.

This forecast is ended by the quote below:

“I think any extended drawdown or a significant drawdown is where you need to dig deep regardless of how experienced you are. Most amateurs zig and zag at the first hurdle mainly, because they expect trading to be a linear curve. But when significant hurdles get put before us, which means drawdowns exceeding 20 per cent or being in drawdown without recovery for over twelve months. That is a time for introspection. That is the time to reaffirm that what you are doing is right and that this is just one of those challenges that comes along every so often. The same happens with our health, with our business, with the economy and with most things in life. It is how one deals with these issues that differentiates the pros from the amateurs.” – Nick Radge (Source: Tradersonline-mag.com)

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