Today is different but damn exciting.
Normally I'd write to tell you that a stock or index has broken out of a channel to the upside, and looking hot to buy.
But what happens when you get that one opportunity that keeps on trending up and you still want to get in and profit from it?
Well if you wait for the market to finally decide to move sideways, it could very well change direction to the downside.
Not only would you have missed the entire move up, but you would have also taken an unnecessary loss because you were too late.
Well one resource stock is one of those opportunities that is on a strong uptrend, and right now is showing no sign of slowing down.
How do I know this?
Let me explain…
The dream indicator for trend traders
If I could choose only one trading indicator in the world that identifies trends, it would have to be the Bollinger Band.
A Bollinger Band is "a set of lines plotted two standard deviations (positively and negatively) away from a simple moving average of the security's price"
Quite a definition, but it's actually very easy to understand.
All you need to know is that a Bollinger Band resembles a cylinder with three lines. A top, middle and bottom line. You’ll see the market moving up, down and in-between these levels depending on which direction the market is moving.
When price moves and stays above the middle line, the trend is up.
When price moves and stays below the middle line, the trend is down.
Let's plot the stock’s chart with the Bollinger Bands to see what direction it's moving in and how we can move with it.
Clearly, you can see the company has been moving above the middle line of the Bollinger Band since April this year.
As long as price stays above the middle line, we can only predict that its shares will keep rising.
You can simply buy the shares or CFDs and hold as long as the price stays continuously above the middle line.
Do you want to earn an extra R8,589 per month from simply opening an SMS
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You won't have to crunch any numbers...
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There are however two red flags you should watch out for to possibly to exit your trade
Red flag #1
Price closes below the middle Bollinger Band and touches the bottom line
Red flag #2
The Bollinger Band stops moving up and the entire band starts to move sideways. This could signal the start of a trend reversal to the downside
But right now, this resource company is on my radar ready to buy and profit from.
If you'd like to know which company I’m talking about, then go here...
“Wisdom yields Wealth”