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A miracle is expected to happen on Alfren shares (LSE:AFR), which would make them soar. This is what sensible speculators have been waiting for and they almost would not get disappointed. The market was in a strong downtrend late last year and in January 2015. However, since February, there has been a very tight sideways movement in the chart, which is valid till now.
The sideways movement might continue, but there is bound to be a breakout. A breakout to the downside is not a possibility to be ignored, though a breakout to the upside is more likely.
It can be seen that the price has been moving within the upper and lower Trendlines, and it is yet to break out above or below one of them. The RSI period 14 is going towards the level 50, which means that the bullish strength is a kind of rising. When the RSI is above the level 50, the best option would be to go long, especially when the price breaks the upper Trendline above. The reverse is true of a bearish breakout, which is a price break below the lower Trendline and a movement of the RSI below the level 50.
There are trading methodologies which are worthless and there are useful methodologies. Astute speculators remain faithful to their useful methodologies when they work and when they do not work; thus making average gains that are more than average losses. There is no way bad times will not come occasionally, irrespective of a trading method used, but it is important to remain faithful to one’s methodology.
This forecast is ended by the quote below:
“I’ll try to give you a few things to think about, but unless you can overcome your inability to accept risk, you don’t have much of a chance to make it as a trader.” – Andy Jordan
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