Tuesday, October 29, 2013

Monthly Forecast on Gulf Keystone (November 2013)

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

No comments:

Post a Comment