Gulf Keystone to Become a Penny Stock

PUBLISHED: 08 Jun 2016 @ 15:38 | Comments (0) | More info about Azeez Mustapha

Gulf Keystone stock (LSE:GKP) has been in a bearish mode for a long time, against the expectation of analysts and investors. Well, the reality is that the stock is under selling pressure and there is no end in sight, for the bearish trend.

In the past two months, price has been moving sideways in the context of a downtrend. While the market consolidates further, forming a long-term base, a breakout is imminent. The more the base holds out, the stronger the breakout is, when it does occur.

The ADX period 14 is not above the level 20, corroborating the present lack of momentum in the market. Plus the DM- is very slightly above the DM+, and also not above the level 20. A closer look at the market reveals that sellers are still willing to push the price further downwards…. and downwards.

Therefore, when the movement of GKP becomes stronger again, it would most likely favor sellers. Price could go on towards the demand levels at 3.00, 2.00 and 1.00. Gulf Keystone is most likely doomed to become a penny stock in a foreseeable future.

This forecast is ended by the quote below:

“Extinction is the default setting for companies as well as animals.” – Chris Tate

What Super Traders Don’t Want You To Know: Super Traders

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.