Gulf Keystone stock (LSE:GKP) has been going south, though
it is not likely that it would go below the support zone at 150.00, which is a
target for the bears.
There has been a ‘Death Cross’ in the chart as the
price crossed the EMA 200 to the downside. The EMA 10 has also crossed the EMA
200 to the downside, affirming the current weakness in the price. The price
could go lower towards the aforementioned support zone, but it may rally
massively from there.
Conclusion: On Gulf
Keystone, the Big Picture for this year is bullish, but that does not mean that
sellers cannot gain from occasional large pullbacks in the market. Some
interesting stocks pulled back by about 40% last year and made surprise
recovery. That is because of the Big Picture (which was northward). I think it’s
helpful to learn from others’ winning principles. The most frequent headache
gotten by speculators happens when crazy movements occur in the market and an
order that would go in one’s direction is automatically smoothed abruptly. That
is why it is OK to consider volatility with one’s stop and ride the bias for as
long as possible, thereby gaining a lot.
“There's a
strong urge to contemplate the past and worry about the future. It seems wise
to do so, but looking at your past often gets you nowhere, especially in
trading. And excessive worry about the future often distracts you from what you
need to do right now in order to ensure future success.” – Joe Ross (Source: Tradingeducators.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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