Northcote – A Worthless Stock

PUBLISHED: 14 Jul 2015 @ 09:32 | Comments (0) | More info about Azeez Mustapha

Northcote stock (LSE:NCT) is virtually worthless as it continues to lose value, going towards zero. Although some bulls see this stock as a wonderful opportunity to go long at very cheap prices, the bears would continue to fight for supremacy, and this may cause a considerable amount of volatility. Speed + magnitude = volatility.

Markets move randomly, and that is why they cannot be predicted, for they are chaotic. For most part of this year 2015 (with the exception of April) the movement of the stock has been random, yet the loss of stamina in the price is clearly visible.

The ADX period 14 is at the level 20, showing a lack of momentum in the market. The DM+ and DM- are also intertwined since there is no directional movement for now. The MACD, default parameters, has both its signal lines and histogram almost below the zero line (though not conspicuously). The situation on Northcote is clearly dicey and it would be rational to abandon the market until there would be a clean directional bias. For now, more loss in value is anticipated.

There are times when things do not go in favor of the speculator, who can then experience a huge negativity. It is then prudent to lose as small as possible – for huge negativity must be avoided, if practicable.

This forecast is ended by the quote below:

“In professional trading, however, performance is not determined by psychological factors. Otherwise, trading strategies that are implemented automatically by computers would be second to none.” – Dr. Brett N. Steenbarger

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