Leyshon Resources: Ride Your Gains to the Skies

PUBLISHED: Dec 04 2012 @ 02:39 | Comments (3) | More info about Azeez Mustapha

Leyshon Resources (LSE:LRL) shares are poised to move skywards, while brave speculators ride their gains accordingly. The price was recently flat – forming serious bottoms. So why buy stocks when we have a bear market? If the market does not appear attractive, we usually scan for another stocks (or we could stay out of the market and watch out for a better trading setup on the chart). However, the market currently has a good opportunity.

Technical Forecast
The forecast here could be multifaceted, especially given the recent dynamic reactions in the price. There was an equilibrium phase that held out too long (it lasted for several months in a row). Further bearish or bullish attempts were contained while this phase lasted. Because of this, it was assumed that the next conspicuous imbalance in the price would ultimately determine whether the bull or the bear would be the winner. As it turned out to be, the price broke out of the equilibrium phase on November 8, 2012, when it saw a daily low of 11.25. The upward movement was extremely significant, and therefore, a pullback in the near-term would not be a surprise. On the chart, 4 Exponential Moving Averages (EMAs) are used. They are EMA 10, EMA 20, EMA 50 and EMA 200. The color that stands for each EMA is seen at the top left corner of the chart.

During the recent equilibrium phase, all the EMAs were flat. Right now, all of them are giving an indication of a bull market. If you missed the last significant breakout, the next best entry period would be when the price pulls back – as it is doing currently – and touch the EMA 20. Then you would buy after a bullish day in the market (a bullish candle). Heroes are known for their tendency to discern the best time to fight and the best time to retreat.

Conclusion: Inevitably, the Leyshon Resources stock will infirm – going skywards. The market players that have invested their time and nerves would like to watch this unfold. Would you take a 600-point profit and pat yourself in the back? Contentment is hard to attain, particularly when the current trend is extant.

This article is ended with the quote below:

“…and especially retail traders and investors, in their rush for quick money tend to circumvent many common-sense steps that would help reveal smaller and bigger faults in their thinking.” – Dan Valcu

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