Kefi Minerals Finds Support at 1.00

PUBLISHED: 29 Apr 2015 @ 14:02 | Comments (0) | More info about Azeez Mustapha

For several months in a row, Kefi Minerals stock (LSE:KEFI) has been unable to close below the great support level at 1.00, in spite of the cut-throat attempts from the bears. The bears are desperate to push the price below the support level, but the bulls are too stubborn to allow that (while they themselves have no upper hands).

The struggle between the bulls and the bears has left a rough trail in the market. Although the RSI period 14 is below the level 50, it cannot really be said that the bears have achieved their purpose unless the price closes below the support level at 1.00 and trends further south. This objective would, not doubt, be difficult for the bears to achieve. No matter the direction the price eventually goes, our risk control just got more satisfying.

Should the bears eventually fail to push the price below the floor (which would likely not happen), the stock could break above the upper Trendline in the chart, going above the resistance level at 1.2 and continuing the upwards journey. The stock must essentially stay above the upper Trendline before it could be said that a bullish bias is confirmed.

Whatever happens, good trading principles can help us trade meaningfully and satisfactorily even now. Paradoxically, difficult experiences may help traders nourish and strengthen their commitment.

“Today, compared to, let’s say 15 years ago, online trading has become much quicker, reliable and enjoyable. Now it is a truly different thing!” – Mario Fabbri

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