Technical outlook – Technical analysis may appear complicated on the surface, but it boils down to an analysis of supply and demand in the market to determine where the price trend is headed.
In this instance, West African Resources Limited (WAF) outlook starting to send negative signals since the pattern slowly unveiled to a potential bearish Head and Shoulders pattern.
For those not familiar with this technical term, a Head and Shoulders pattern (H&S) is one of the most popular patterns in technical analysis.
A Head and Shoulders pattern describes a specific chart formation that helps traders identify when a reversal may be underway after a trend has exhausted itself.
In theory, the (H&P) pattern predicts a bullish-to-bearish trend reversal that appears as a baseline with three peaks.
To understand the pattern name, think of the two outside peaks as the ‘shoulders’ and the (higher) middle peak as the ‘head’.
The ‘head’ to the ‘neckline’ is the level of support or resistance that traders use to determine strategic areas to place orders as we measure these two points to determine the downside trajectory, which is $0.60-65, where profit-taking is expected.
Only act on the break of the neckline.
Company Overview – West African Resources Limited (WAF) is a gold resource company which focused on acquisition, exploration and development of resource projects in Burkina Faso, West Africa. The Company’s flagship project is the Boulsa Gold Project.