Monthly Forecast on Gulf Keystone (July 2014)

PUBLISHED: 26 Jun 2014 @ 00:13 | Comments (0) | More info about Azeez Mustapha

Gulf Keystone shares (LSE:GKP) are in a major downtrend; though the price has been consolidating to the downside since April 2014. The downside consolidation is very slow and tardy because the bears themselves have not made substantial gains since April 2014.

The ADX period 14 is almost below the level 20 (showing that the market is currently not very strong). Besides, the DM+ is above the DM-, revealing the bears’ supremacy in spite of the present consolidation. The MACD (default parameters) have both its histogram and signal lines below the zero line. The price may still go further downwards towards the support level at 70.000; which is a short-term target for the sellers.

It is, however, not very likely that the price would break below the aforementioned support level, since a bullish divergence pattern has been formed in the chart.

This forecast is ended with the quote below. It got to do withthe beauty of trading:

“It’s a losing trade, but only one trade in thousands you will do in your career. It’s a bad trade but your account is up for the day, week, month, year. It’s a bad trade but you are sitting in the comfort of your home/office, not on top of a roof in summer laying down tar or digging up frozen pipes in the dead of winter while your A-hole boss yells at you. It’s a bad trade but you have your health, friends, and family.” – Brian Lund (source: www.tradersonline-mag.com)

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