Gulf Keystone stock (LSE:GKP), which was recently
trending downwards, is now consolidating. This is a pause in the midst of an
extant momentum prior to the next move – either in favor of buyers or sellers. What
is now the next direction in the month of November?
On the chart, the price is currently between the
Upper Trendline and the Lower Trendline. Should the price break the Upper Trendline
to the upside while the RSI period 14 goes above the level 50, the market would
journey upwards. Reverse the logic for the downside, which is more likely. Yes,
it is more likely that the price would resume its southward journey after this
consolidation. The RSI period 14 is already below the level 50. Should the
price test the Lower Trendline, break it downwards and close below it, the
price would continue to nosedive.
Conclusion: Since
Gulf Keystone has succeeded in making some astute forecasters appear like fools
in recent times, it makes sense to handle this market with a measure of
rationality and risk control methods. A good trader knows how to handle the unpredictability
in the market adroitly…though it is disheartening that most traders have the mentality
that cannot help their career. Should you have valid trading rules, but unable
to be faithful to them, you would then need to work on your mindset.
This forecast is ended with the quote below:
“If you
ask yourself why trading is so difficult, there is only one answer: Because
nothing in life is more difficult than to change your personality.” – Norman
Welz
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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