Gulf Keystone stock (LSE:GKP) is still a bear
market. The bearish outlook has been strengthened and buyers have often been
deceived by false rallies which proved to be bogus signals. The futile bullish
attempts have failed to make any significant impact on the market, for the
bearish sentiment has overwhelmed the bulls. You cannot make a mark on a river
by taking a bucket of water from it. You cannot make an impression on a lake by
striking it with a sword.
It is indicators that make it easier for us to see a
confirmation of a bias. In the chart, the ADX period 14 is around the level 30,
showing a considerable strength in the market. The DM- is above the DM+,
meaning that the sellers have upper hands. Also, the MACD (default parameters) has
both its histogram and signal lines below the zero line. This fact depicts a
Bearish Confirmation Pattern in the chart; and the only sensible thing to do is
to go short.
At times, the market moves slowly and steadily – the
periods when the market is flat and trend followers are subjected to whipsaws.
At times, the market moves in a determined mode. The determined mode on Gulf
Keystone is bearish and the price would soon test the support level at 60.00.
This forecast is ended by the quote below:
"If you watch the market all day long you get so
much information that you lose your common sense." -- Old
Trader
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
No comments:
Post a Comment