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Tuesday, June 30, 2015

Monthly Forecast on Gulf Keystone (July 2015)

Gulf Keystone stock (LSE:GKP) has broken out of a long-term base and this could be the beginning of a persistent bullish run. The price trended south in January to March 2015. The gap that occurred in February simply proffered an opportunity to sell short in the context of a downtrend.

Since April, the stock has been moving sideways, forming a strong base. Upon a closer look, it would be seen that the price was consolidating to the downside.  What would happen now? There is one sure outcome: Sideways and slow movements would be followed by strong and fast movements, no matter how long the slow movements take. Strong and fast movements would be followed by sideways and slow, no matter how long the fast movements take. When the markets are moving slowly and sideways, trend-following strategies suffer.

The price has broken to the upside, closing above the EMA 21; plus the Williams’ % Range period 20 gone into the overbought region. The price appears to be ready for a northwards journey within the next several months.

This forecast is ended by the quote below:

“After all, one thing is certain: The best tip will only be of use to you if you believe in it deep down and can then apply it consistently in practical trading.” – Marko Graenitz

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

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