Contrary to expectations, Gulf Keystone shares (LSE:GKP)
were weak throughout the last year. Price dived freely and upwards bounces
proffered great short-selling opportunities. The bearish outlook is valid for
this year: the upward bounces along the way should not be chased. A mouse that
tries to chase a cat is looking for trouble. A dog that tries to chase a wolf
is looking for trouble.
In the chart, 4 EMAs are used for the analysis, and
they are EMAs 10, 20, 50 and 200. The color that stands for each EMA is shown
on the top left side of the chart. All the EMAs support the current bearish
outlook. Unless price crosses the EMA 200 to the upside and closes above it,
the shares would continue to drop. In this kind of situation, one can look to
buy when price rallies into the EMA 20 or 50.
We would need to think of the attributes of super
traders who do not act as if they are gods. They do not showcase self-esteem,
and they take the preservation of their capital seriously, as a prerequisite
for the gains to be made. We thus want to trade when our entry criteria are
met.
This forecast is ended by the quote below:
“The best money managers in the world shoot for realistic
returns and do so with very low drawdowns. If you run money and consistently
make low double digit returns with small drawdowns, you’ll have all the money
you could ever want to manage.” – Dave Landry
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Learn from the Generals of the Markets: Market Generals
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