Review of the 1 August 2013
I recommended holding for unleveraged, the market touched 101 before bouncing back quite quickly in one of the strongest recent trends. I advised to go long once the break was clearly shown in the volume indicator, 700 basis point return on a strong trend.
Today’s Forecast
There are no reliable market fundamentals to support the current movements and market capitalisation is so small that relatively minor levels of trading activity can distort the price considerably. With this in mind we can rely on the momentum indicators particularly with the long term EMA being relatively flat. Remember to use the trade volume as a guide for early entry when a cross over looks likely from the charts.