Monthly Forecast on Gulf Keystone (October 2014)

PUBLISHED: 02 Oct 2014 @ 08:47 | Comments (0) | More info about Azeez Mustapha

Gulf Keystone stock (LSE:GKP) is still a bear market. The bearish outlook has been strengthened and buyers have often been deceived by false rallies which proved to be bogus signals. The futile bullish attempts have failed to make any significant impact on the market, for the bearish sentiment has overwhelmed the bulls. You cannot make a mark on a river by taking a bucket of water from it. You cannot make an impression on a lake by striking it with a sword.

It is indicators that make it easier for us to see a confirmation of a bias. In the chart, the ADX period 14 is around the level 30, showing a considerable strength in the market. The DM- is above the DM+, meaning that the sellers have upper hands. Also, the MACD (default parameters) has both its histogram and signal lines below the zero line. This fact depicts a Bearish Confirmation Pattern in the chart; and the only sensible thing to do is to go short.

At times, the market moves slowly and steadily – the periods when the market is flat and trend followers are subjected to whipsaws. At times, the market moves in a determined mode. The determined mode on Gulf Keystone is bearish and the price would soon test the support level at 60.00.

This forecast is ended by the quote below:

“If you watch the market all day long you get so much information that you lose your common sense.” — Old Trader

Learn from the Generals of the Markets: Market Generals

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