Hurricane Energy stock (LSE:HUR) recently experienced a false bullish breakout when the analytical tools in the chart didn’t support a bullish breakout.
The situation in the market is currently dicey. The ADX period 14 is not far from the level 20, which means there is currently no great momentum in the market. The DMI+ is not above the DM- (both are at the same level).
Ironically, MACD default parameters, has its signal line below the zero line; while the histogram is above the zero line. There are mixed signals in the market.
When the ADX period 14 rises above the level 30, and the DM- is above the DM+… When the MACD has both its histogram and signal lines below the zero line, then we have a Bearish Confirmation Pattern.
In case a complete opposite of the preceding paragraph occurs, then the signal will be bullish. Right now, the probability of HUR going further downwards is higher than its probability of going upwards.
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