Gulf Keystone shares (LSE:GKP)
have formed a strong base. The outlook is bearish in the long-term and neutral
in the short-term. The current base started in September 2016, and it has held
out till now.
The position of the ADX
period 14, its DM+ and DM-, points to a trendless market. The position of the
MACD (default parameters), with the signal lines and histogram, also points to
a trendless market.
This means that Gulf
Keystone is not a good market to speculate on right now. However, a strong
breakout (a rise in momentum) is expected and that would be strong or violent,
putting an abrupt end to the current bearish outlook/neutrality.
It cannot be mentioned
exactly when this would happen in 2017, but the bearish trend seems to have
gone too far and it is currently being rejected at the base. It seems the
market would not go further south.
The more the flat
movement holds out, the more imminent a strong breakout is… a momentum that
would most probably be in favor of bulls. This would create a wonderful trading
opportunity for buyers and the expected strong rally would put smile on their faces.
Azeez Mustapha
Market Analyst, Trading Signals Provider and Coach
Super Trading Strategies: Super Strategies
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