GCM Resources Shares To Go North

PUBLISHED: 28 Nov 2012 @ 19:33 | Comments (0) | More info about Azeez Mustapha

GCM Resources (LSE:GCM) shares currently evince some probability of a northward journey. Right now, the bullish attempts might look desultory, but event on the chart would unfold as extrapolated below.

Technical Forecast
We can say that the historical traces of buyers and sellers could determine what might unfold in a foreseeable future. Given the visual representation of the price, it would be noticed that the price was going downwards before October 2012. In October, the price was caught in a decisive equilibrium zone, which was marked by the parallel Trendlines. A break above the upper Trendline on October 22 proved to be a false breakout, because the price could not close above that line. In November 2012, there was another determined bullish breakout, but it was short-lived. The price stalled and broke below the upper Trendline. Now, there was another decisive bullish breakout which occurred on November 22, 2012 (which can be successful this time around). The price closed above the upper Trendline; poised to go up. This assumption is also supported by the fact that the Relative Strength Index 14 period is far above the level 50 and is heading above the level 60. With all the recent upward breakouts, the price has failed to go determinedly lower.

On November 27, 2012, the price on the chart closed at 38.75. This bullish attempt might go as far as 44.75, but it would be assumed that this expectation is invalid, should the price go below the support levels at 37.75, and especially, 36.75. Going short in a bear market should be identical. Lurk till the market repairs beyond the southbound moving line, then when the market starts to repair southward again, and then a position is opened.

Conclusion: When GCM Resources stock goes on with its perpetual northward bias, it would do so with unrestrained exuberance. Whether the market gives us more gain than we anticipated or far less than that, we must acknowledge that the market is always right. The conflict between reasoning and emotion starts only when a speculator becomes subjective.

This article is ended with the quote below:

“Fear isn’t our friend. It disables us from moving forward and causes us to shrink from doing what’s right.” – Joe Stowell

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