Long-term Forecast on Direct Line Group

Share On Facebook
share on Linkedin
Print

The fact that Direct Line Insurance Group (LSE:DLG) shares are potentially favorable to buyers should not be downplayed. The technical reasons for this assumption are trotted out in this article. Even when there are brief corrections, the price would go as analyzed, as bears and bulls continue their normal activities.

Technical Forecast
Based on the chart below (which shows 60-minute candles for a period of 5 days), the stock price of this great company came into existence on October 11, 2012. That day the price on the chart opened at 181. Technically, two Exponential Moving Averages periods 11 and 56 are used on the chart. The EMA 11 is above the EMA 56, which means the price has been in an uptrend since its inception. This is a ‘buy’ signal. This market closed today, at 193, showing a considerable gain since last week. The resistance levels that would be breached to the upside are 194 and 195, whereas the support levels at 192 and 191 ought to do a good job halting very serious bearish plunge.

Bullish and bearish forces, i.e. the potency of resistance and support territories, will inevitably continue to the upside. For buyers and sellers in the stock markets, accurate and timely data is a prerequisite for exercising trading decisions. The market reactions must be seen in real time as fundamental figures come out. The market can only go unremittingly up or down (not baulking). If some other risk factors are also taken into consideration, you would undoubtedly reach a conclusion that it pays to only stick to what ensures survival in the nonzero-sum game.

Conclusion: It stands to reason that Direct Line Group stock would go up. Speculation needs not be daunting if you have come across an appropriate methodology. In the opposite, the more experienced you have as a speculator, the more favorable you would look at the markets – and perhaps maintain your peace of mind no matter what the markets do.

This article is ended with the quote below:

“If you want to succeed as a trader it is not enough to analyze and trade well. You have to grow a thick skin and you have to have nerves of steel!” – Harry Boxer

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.

Leave A Reply

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20220628 06:50:25