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It is true that the Urals Energy stock (LSE:UEN) is worthy to be owned as explained in this forecast. Going through the historical data, it would be noticed that each stock price would record distinct open and close prices. One would do well to ride this stock to the skies with perseverance. Perseverance remains the gateway to breakthrough, not listless resignation.
Technical Forecast
Technically, 4 Exponential Moving Averages (EMAs) are used here. They are EMAs 10, 20, 50 and 200. The color representing each EMA is indicated at the top left side of the chart below. We can see that the market was in a long-term down-trend before the current scenario. In August 7, 2012, the Urals Energy market reached an all time low of 4.375. Since then further bearish efforts proved futile. This is an instance of a classic buying. When there have been a few flops in the recent bearish attempts, it was confirmed that the trend would change upwards. This bullish scenario is now valid as the EMA 20 has already crossed its EMA 50 counterpart to the upside, with the price closing above them. The EMA 10 itself is also pointing upwards.
It is expected that the price would eventually close above the EMA 200: a Golden Cross (it takes a long time for the EMA 200 to change to an uptrend, and when it happens the bullish run would have gone very far). The price was at 6.25, as I wrote this forecast. There are demand zones at 5.50 and 5.00, whereas the supply zones at 7.00 and 7.50 are vulnerable. We would do well to consider the market pressure, since price movements can happen rapidly, and this might not be anticipated by most traders. A northward journey could consist of several bullish candles that show as a combination of bearish and bullish bars in smaller timeframes.
Conclusion: Speculators are aware of the fact that the price can go protractedly north on a big timeframe, though there can be some alluring pullbacks on small timeframes, and conversely. In spite of some pullbacks that would be experienced soon, the Urals Energy stock would irrevocably trend upwards. You are not advised to short this market, because the more significant the extant bullish pressure, the more possibly would your short orders go into negative zones.
This article is ended with the quote below:
“Knowing the underlying gripping reasons why you want to trade will greatly support your success. Know what your purpose is for trading and it will go a long way in the service of you goals.” – Dr. Woody Johnson
Great summary… I drew a similar conclusion last weekend and took the plunge at 5.50p Monday morning. Be interested to hear what you make of today’s trading– hopefully MMs will draw a line under this nonsense and let this one go over the couple of month. God only knows the long-termers on the BBs, in at c. 10-15p, crave emancipation from this dastardly dog! Here’s hoping for recurring historical 5p tech bounce…
ATB, mate. Really enjoy reading your articles. Keep up the good work.
Dear Wanton Hearts:
Thanks for your logical observation. Regards.
I assume you stand by your sage reflections as above, then? Many worried by mass selling into positive news today… Updates – if you have any – on today’s trading appreciated, as always.
ATB