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Would Sirius Petroleum (LSE:SRSP) stock continue to plunge? The answer is “no,” because of the reasons given here. Common sense requires us not to challenge facts or follow known falsehood, since the more we accept reality, the better our situation would be. When the price reaches a bottom and further bearish attempts are rejected in a very cheap market, then one would do well to buy. This approach may not be peerless, but it pays to buy cheap stocks from overextended bear markets rather than buy expensive stocks in overextended bull markets.
Technical Forecast
It is true that the stock was once in a bearish phase: something that professionals know how to profit from. Negativity is clearly repugnant, especially on investments. It might make you feel uneasy. In other word, most traders do not know how to properly deal with negativity on their investments. In the face of the past bearish bias, the price reached a low of 3.375 on October 23, 2012, and began some bullish determination (which is still valid). On the chart, two technical indicators are used. They are MACD (default parameters) and the ADX period 14. The ADX DM+ is now clearly above its DM- counterpart, while the ADX line itself (black color) is gathering strength as it is trying to point above the level 20. As the buying pressure increases, the ADX line would go above the level 30 and continue moving upwards. The MACD histogram is already above the zero line as its signal lines are about to cross the zero line to the upside. This would be valid, should the bullish determination continue for the next several days. Once this is done, it would result in a Bullish Confirmation Pattern on the chart.
The market price closed at 4.000. The nearest support territories are 3.950 and 3.900, whereas the nearest resistance territories are 4.050 and 4.100. The current price condition is now denuded, as the bullish determination has superseded the recent bearish threat. Long orders are judicious right now – though the case is not so in all markets.
Conclusion: Speculation ought not to be complicated, especially when it comes to the markets. Since all we can effect here are long and short orders. Still, when it comes to this primary activity of speculators, something might not work as envisaged. No matter how uncomplicated investing itself might seem, making gains cannot be so fast as such. Long orders on Sirinus Petroleum would potentially produce profits in the long run. Gains are accumulated by tested and tried methods. Patience should be your ally; not your foe.
This article is ended with the quote below:
“Be it emotional or physical in nature, both pleasure and pain are felt and recognized in us all and if as traders we allow our experiences of pleasure and pain to influence our judgment and actions in trading, we will soon find the door of failure slamming firmly in our face.” – Sam Evans
