Tower Resources: Buying Pressure Keeps Pushing the Price Northward

PUBLISHED: Nov 13 2013 @ 02:08 | Comments (8) | More info about Azeez Mustapha

There is a Bullish Confirmation Pattern on Tower Resources (LSE:TRP), though the current southward correction could make some think that the price would plummet once again (since day trading bears could make quick bucks here). However, as Clem Chamber once said: No one ever criticizes madness when it is working in their favor.

Why this statement? It is abnormal to go short when the price is clearly bullish. Instead, it may be better to buy long as things go on sale in a bull market. There are 4 EMAs on the chart; EMAs10, 20, 50 and 200. The formation of the EMAs 10, 20, and 50 testifies to the bullish strength in the market, whereas there has already been a Golden Cross when the price crossed the EMA 200 to the upside and closed above it. There is now a support line 2.00 while the price itself may go upwards towards the resistance line of 4.00 in the nearest future.

Conclusion: On Tower Resources: The sly bull is looking for opportunities to keep on pushing the price. The slow walking of a tiger is not due to fear; he is looking for his food. There would be times when one grapples with flat performance and roll-downs. When one’s gains are increasing quickly, one should remember that some drawdown is nigh. Trading is risk management.

This forecast is ended with the quote below:

“Trading [is] the journey into self-mastery.” – Rande Howell

Eye-opening trading lessons: Lessons from Expert Traders

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