Gulf Keystone (LSE:GKP) is now a bear market. The
stock has been bearish since the beginning of this year.
The ADX period 14 is above the level 50, showing a
strong trend in the market. In addition, the DM+ is vividly above the DM-,
meaning that the sellers have the upper hands. The MACD (default parameters)
has both its signal lines and histogram above the zero line. This shows a
Bearish Confirmation Pattern in the chart. So the price may go further
downwards in the month of April 2014. The price reached the support level at
104.00, but it could even go towards another support level at 90.00
Conclusion: There is
a probability that GKP may continue going further lower, although the
probability exists that the market may recover a bit before the end of this
year. A bias may hold out longer than the buyers could ever imagine… Those who
shorted this stock since January 2014 would have earned decent returns indeed.
This forecast is ended with the quote below:
“There
is very little material printed or online for the beginning trader on the
subject of drawdowns. This is very unfortunate, because drawdowns are a harsh
reality of trading. As a result, beginning traders have false expectations of
the trading environment. Drawdowns are a fact of trading, and how a trader
deals with drawdowns will determine the end game.” - Peter
Brandt (Source: www.tradersonline-mag.com)
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Eye-opening trading lessons: Lessons from Expert Traders
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