Rare Earth Minerals: Stay Out Of This Market

PUBLISHED: Nov 27 2012 @ 07:55 | Comments (0) | More info about Azeez Mustapha

The best thing speculators can do on the Rare Earth Minerals plc. (LSE:REM) shares is to stay out of that market. As poignant as it seems, whenever the price rebounds upwards, it plunges precipitously. So be wary and remain safe. The crab makes use of its eyes when doing its self-employed sentinel job.

Technical Forecast
In no uncertain terms, this market has been in a bearish mode for too long – and there is no end in sight for this long-term development. Only a stickler for southward biases would make any meaningful returns out of this market. For this analysis, Exponential Moving Average period 21 and Williams’ Percentage Range period 20 are used. The EMA is constantly in a vivid downward trend, while the price remains below it. As long as the price remains below the EMA 21, failing to close above it, the market would remain unfavorable to buyers. The Williams’ % Range has constantly shown oversold readings: whenever the price headed out a little from the oversold region, it would fall back into that region. The current reading of the Williams’ % Range indicator is therefore not a bullish signal.

The price was at the level 0.0625 when this article was being prepared. There are supply zones at 0.0700 and 0.0800, while the demand zones at 0.0500 and 0.0400 could be breached to the downside as the present scenario continues. You need not feel antsy about this matter: simply stay away from the market. Staying aside is also a good position.

Conclusion: Rare Earth Minerals stock remains a terrible entity, until circumstances change, and there forms a clear bullish confirmation. Technical analyses show the realities in the financial markets. Whenever bulls dread the market negativity in the price and on their portfolios, the stock would definitely plunge. But if they are confident about what they are doing and send many long orders, the price may rise. In opposition to what many think – it would be difficult for this market to pick up – unless there are extremely favorable changes in the markets. There is nothing interesting here.

This article is ended with the quote below:

“…Simpler charts lead to better trading because of the smaller size of information stored and compared during chart reading. If you know and have experienced several times crossings of indicators and their averages at or very near zero, when this pattern occurs again, you are confident that the processing and decision will be almost instantaneous with a higher probability for success.” – Dan Valcu

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).

Follow @ItuGlobal

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.