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Caza Oil and Gas stock (LSE:CAZA) is vividly attractive, as speculators would see. This is not declared because of a herd mentality, but because of a valid technical reason. Panic buying is considered a bloomer, unless the reason for doing so is judicious. Do not chase the markets – a dog must not chase a leopard.
Technical Forecast
On the chart below, we can see that the company price chart was in a protracted southward bias prior to the current technical development which makes the stock attractive. In the months of August and September 2012, the market price found some adamant accumulation zones and found it impossible to continue to nosedive gradually as it had done before. After some period of indecision, there was a noteworthy northward breakout. The upward breakout started in September and has continued till now. The Exponential Moving Average (EMA) period 21, and the Williams’ Percentage Range period 20 are used on this chart. This month, the Williams’ % Range reached the oversold region, i.e. below -80, and then moved up sharply towards the overbought region, i.e. above -20. This means that there could be some corrections on the chart before the price continues upwards. Meanwhile, the EMA 21 is below the current price (this is the same indicator that was trending downwards a few months ago). The EMA is now heading upwards as the price remain above it – BUY!
The latest candle on the chart is seriously bullish: showing the bulls’ supremacy. The price is now at 9.625, with resistance levels at 10.00 and 10.50. Immediate support levels are at 9.00 and 8.50. Even when your trading rules have been clearly detailed, or you are trading according to a winning technique, you would need to speculate just according to how the rules are laid out. It is a fact that plans are easy to make but difficult to execute. Since you can also make money from this market, it will do you little good to dwell on the things you dislike about the market. Instead, get motivated by considering the benefits that an attractive market like this one proffers.
Conclusion: When a stock price is in a bullish mode the price goes up to form higher highs. Alternatively, when a stock price is in a bearish mode the price goes down to form lower lows. Caza Oil & Gas shares have good potential for investors and traders, as gains are compounded from them and other attractive markets. Decent gains are realized when sensible profits accumulate constantly. I would prefer you to be a speculator who becomes wealthy slowly but steadily (as most successful speculators have done). Compounding returns are highly satisfactory in the long run, and this is one of the beauties of trading.
This article is ended with the quote below:
“Sometimes the best setup goes wrong and you have to exit the market at your stop-loss without hesitation… you have to be able to control yourself to be able to control your trading.” – John Netto
