It is expected that Gulf Keystone (LSE:GKP) would experience further consolidation and subsequent downtrend in the month of December 2013. Any rally here – as it is currently happening – would be short-term in nature as well as giving the bears a wonderful opportunity to sell short at better prices.
You can see that the price, which has been trending vividly lower since September 2013, has just broken out of the Trendlines (the lower Trendline, to be precise). The price closed below the lower Trendline. Therefore, any rally would be a false signal. The RSI period 14 is below the level 50. In the month of December, the price could reach the accumulation territory of 140.00; whereas the distribution territories of 180.00 and 200.00 would serve as hurdles to any bullish attempts.
Conclusion: Gulf Keystone is a bear market and it would continue to be such.
At this time, the bull may be threatening, but it really is a toothless dog… it merely resembles a tiger; it cannot hunt down even a rodent. Anyhow, our gains come from other traders’ blunders. “Lessons learned from a loss are the price of knowledge gained,” declares Joe Ross. Please, we need to learn from the past negativity.
This forecast is ended with the quote below:
“The point is this: one trade won’t make your career, but one trade could break your career. (Or at least blow up this trading account…)” - Rick Wright
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders