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Wednesday, April 30, 2014

Monthly Forecast on Gulf Keystone (May 2014)

Gulf Keystone stock (LSE:GKP) is bearish in the medium-term and bullish in the long-term. The bearish bias is strong enough to make the bear profitable and to make the bull anxious.

When the recent bearish bias began, it was thought that things would change as the price tested one support level after the other. However, the support levels kept getting broken to the downside. If thrown upwards many times, the machete would tend to land on its flat side.

However, the current price action reveals that the stock may be trying to bounce upwards. There is a very strong psychological support level at 80.00. As soon as the price is above that support level, the bullish attempts in the market remain logical. The price is making an attempt to break above the upper Trendline; an attempt that could be successful. The RSI period 14 is below the level 40, but it needs to go above the level 50 in order to support the correct price action. A break above the resistance level at 100.00 is would be a clean signal that the bulls have the upper hands.

A renewed momentum makes the market looks sexy to the bulls. The price could move upwards towards the resistance level at 140.00.

This forecast is ended with the quote below:

“Stay realistically upbeat and focus on developing your skills as a trader. Work towards excellence, not perfection. You have to be good, but not perfect. You must have top-notch trading skills, but you don't need to be the best trader in history. When you take your ego out of the picture and stay modest, you'll find it easier to concentrate. And when you focus on the process of trading, rather than on the prize, you'll trade more profitably.” -  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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