CPP Group: Long Positions Would Be Favorable

PUBLISHED: 22 Aug 2013 @ 04:58 | Comments (8) | More info about Azeez Mustapha

CPP Group shares (LSE:CPP) are now favorable to buyer. The price has broken upwards after a protracted sideways movement which lasted several months following a bearish bias.

It can be seen that the price eventually broke out of a protracted sideways bias – to the upside. Since then, the price has closed above the upper Trendline, trading further north. The present massive pullback in the price is merely an opportunity to enter long again. It should not be forgotten that the RSI period 14 is above the level 50, which still confirms the bull’s hegemony. The price could ultimately reach the supply level of 50. The prospective bear can hurt herself/himself here. Could the cobra bite an iron rod without hurting itself?

Conclusion: Long positions on CPP Group would be favorable. Is this a blind assumption? No. Instead, it is a chart analysis that reveals what only trained eyes can see and the reasons for market actions. When you see the market moving seriously north as a result of some positive fundamentals, long positions would be favorable on it. On the other hand, should the market movement be determined by herd mentality or institutional panic speculation, mean reversion techniques could be favorable.

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