Taylor Wimpey stock (LSE:TW.) is a falling knife, having dropped like a stone last week. The market has been volatile since then…. And recovery is possible.
Yes, the market is really a falling knife. Price is below the EMA 21, and the Williams’ % Range period 20 is in the oversold territory. Prior to the time, the market had been largely consolidating, for the most part of this year.
Taylor Wimpey has run against adamant accumulation territories, and a rally is bound to happen. It is possible that price would trend further downwards: but a rally would come around soon.
A buy signal would be formed once the Williams’ Range period 20 is in the overbought territory and the price has gone above the EMA 21 again. That would happen this year, though it might take some time, which is good news for those who know how to catch falling knives.
This forecast is ended by the quote below:
“There’s an advantage to using a more methodical approach: continue to search for solid, high probability trade setups, outline detailed trading plans, and trade prudently with unwavering discipline.” – Joe Ross
What Super Traders Don’t Want You To Know: Super Traders
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).
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.
Hot Features
Premium
Register to chat with like-minded investors on our interactive forums.
