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Tuesday, November 11, 2014

Keep on Selling Gulfsands Petroleum!

Gulfsands Petroleum shares (LSE:GPX) have been falling and it would be logical to keep on selling them. As the shares fall further, buyers are being hit repeatedly because they refuse to honor the power of the bear at the moment. The viper does not tolerate insults.

In the chart, the ADX period 14 is around the level 20, meaning that the momentum in the market is very low. But the momentum would soon become strong. The DM- is slightly above the DM+, showing that buyers are being caught on the wrong side of the market flow. The MACD (default parameters) has both its signal lines and histogram below the zero line.

Essentially, there is a Bearish Confirmation Pattern in the chart – which would become particularly strong as the ADX line rises above the level 30. The price may thus end up reaching the support level at 20.000. Some may contend this possibility. However, you do not need to be a pro before you contend trading facts. This does not mean we cannot be wrong, but it means we would come out victorious. We do not worry about inevitable negativity as long as we come out victorious in the long run.

This forecast is ended by the quote below:

One of my broker/trader friends wins only 27% of his trades, but makes lots of money every year. It's daunting to think about it, but you may see many more failures than successes on your way to becoming a seasoned, master trader.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals


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