Monthly Forecast on Gulf Keystone (November 2014)

Gulf Keystone shares (LSE:GKP) have been making commendable effort to go bullish. The price bottomed last month and since then has rallied. It is possible that the rally may be sustained in spite of occasional pullbacks, which are normal. You need to know the historical performances of your trading approach so that you can trade with confidence.

In the chart, the price broke upwards from the upper Trendline, as the RSI period 14 goes above the level 50. This is a ‘buy’ signal; plus the price may go upwards towards the supply level at 80 in this month. As long as the RSI is above the level 50 and the price does not go below the demand level at 40.00, the bullish outlook is extant. We need to be patient as our positions are subject to the forces in the markets. We check our trading results in the long run, not in the short run. Crops do not grow and mature in one day – even when we want it to be so.

This forecast is ended by the quote below:

“You can have a number of setups in front of you and it is vital to have trading rules to distinguish between the opportunities you are happy to consider and those which you are not.” – Sam Evans

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

The only logical thing to do on Wincanton…

Wincanton stock (LSE:WIN) requires only one direction for those who want to survive in that market. The only logical direction is to go long. In spite of the volatility in the market, the trend has been up for several months. The logic to successful trading is to abandon approaches that are not in our best interest. We want to do only the things that work for us.  To achieve this, we stick to a positive expectancy system, even if the accuracy is not very high.

The EMAs 10, 20, 50, and 200 have been sloping upwards in support of the upwards trend. The color that stands for each EMA is shown on the top left side of the chart. The price has just tested the EMA 50 and may rise from there. The price can thus reach the supply level at 160.00 within the next few months. Only a break below the EMA 200 could signal the end of the uptrend.

We do not need to fail to sleep because of short-term results. Instead, we want to see our results in the long term (like on a quarterly basis), and as a result of this, we are not swayed by day-to-day noises in the markets.

This forecast is ended by the quote below:

“There is more to life than trading and investing.  Don’t live to trade.  Trade to live.  Being the richest man or woman in the graveyard does nothing for your quality of life.” – Dr. Woody Johnson

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

Source: http://uk.advfn.com/newspaper/authors/azeez-mustapha

Monthly Technical Reviews on Gold and Silver (November 2014)

GOLD (XAUUSD)

Dominant Bias: Bearish

Gold is a weak market, and it is not advisable to seek long trades in this market, unless everything has gone completely bullish. The market dropped heavily last week, reaching as low as the demand level of 1161.20. There is a strong Bearish Confirmation Pattern in the market and the aforementioned demand level may even be breached to the downside as the market continues its weakness. The supply levels at 1195.00 and 1200.00 ought to counter any rallies that may want to jeopardize the extant bearish outlook. It is therefore sensible to look for short trades only, as long as the price action suggests weakness.    

SILVER (XAGUSD)

Dominant Bias: Bearish  

Last week, Silver fell by over 1450 points, following a protracted equilibrium phase that lasted for almost one month. When Gold was trending upwards last month, Silver was consolidating. When Gold started trending down, Silver broke out of the equilibrium zone, to the downside, reaching as low as the support level at 15.7500. This support level also stands a good chance of being breached to the downside as selling pressure drives the price further south. The price may eventually reach the support level at 15.5000 this month.  

Source: www.tallinex.com

 Learn from the Generals of the Markets: Market Generals

Daily analysis of major pairs for November 3, 2014

The USD/JPY closed at 112.35 on Friday, October 31, 2014. The pair closed on a bullish note, having trended upwards by around 440 pips last week. This is a very strong northward journey that could continue this week. However, the possibility of some transitory pullbacks cannot be ruled out.

EUR/USD:  This is a bear market, which means the direction of the price is southward and volatile. The support line at 1.2500 has been tested and it may be retested again. Should the price succeed in breaking that support line to the downside, the next target would be the support line at 1.2450.

USD/CHF: This currency trading instrument has gone in the opposite direction to the EUR/USD – as it normally does. The price climbed by 200 pips last week (that is, from the support level at 0.9450), closing above the support level at 0.9600. The next target to be breached to the upside is the resistance level at 0.9650. This resistance level was tested last week, and it could also be tested this week.

GBP/USD:  Since the GBP/USD is also normally correlated in a positive mode, when compared to the EUR/USD, it is no wonder that the price has gone seriously downwards. There is a lot of sideways movement and market activity above the accumulation territory at 1.5950 and that accumulation territory may be breached to the downside, especially when the Greenback gains more strength.

USD/JPY: The USD/JPY closed at 112.35 on Friday, October 31, 2014. The pair closed on a bullish note, having trended upwards by around 440 pips last week. This is a very strong northward journey that could continue this week. However, the possibility of some transitory pullbacks cannot be ruled out.

EUR/JPY:  Like all other JPY pairs, this cross also trended upwards last week. The Euro is weak somewhere else, but this pair is going upwards because the Yen is essentially weaker than the Euro. The price is now above the demand zone at 140.50, and it may reach the supply zone at 141.50 this week.

Performed by Azeez Mustapha,

Analytical expert

www.instaforex.com    

InstaForex Companies Group

Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314

Weekly Trading Forecasts on Major Pairs (November 3 - 7, 2014)

Here’s the market outlook for the week:

EURUSD

Dominant bias: Bearish

This is a bear market, which continued its bearish trend last week. The bearish trend is expected to continue this week as well, although the possibilities of transitory rallies cannot be ruled out. The support line at 1.2500 has been tested and it would be tested again as the bears make more effort to push the price to the downside. Should they succeed in doing so, the next target in the market would be the support lines at 1.2450 and 1.2400.

USDCHF

Dominant bias: Bullish   

This is a bull market, which moved further north last week. This northward movement is supposed to continue this week, in spite of occasional corrections in the market. The resistance level at 0.9650 was tested last week, and with further northward journey, it would be tested again and breached to the upside as the price targets another support level at 0.9750.  The occasional correction would also be challenged at the support levels of 0.9550 and 0.9500.

GBPUSD

Dominant bias: Bearish  

The GBP, which is currently strong versus some other currencies, is weak when compared to the USD. This is because the USD is now one of the strongest currencies among the majors. Besides, the GBPUSD is normally correlated with the EURUSD in a positive fashion and therefore, the former would go downwards when the latter goes downwards (except in rare cases). From the distribution territory at 1.6150, the price dived towards the accumulation territory at 1.5950, testing it a few times. With more strength in the USD, the accumulation territory would be breached to the downside as the price targets another accumulation territory at 1.5850.

USDJPY

Dominant bias: Bullish  

Since the USD is very strong and the JPY is very weak, it is no wonder that this pair moved upwards by more than 450 pips last week. The trend is supposed to continue as long as the USD is strong versus the JPY, allowing the bulls to target the supply level at 113.50. The demand levels at 111.50 and 111.00 should act as challenges to southwards corrections along the way.    

EURJPY

Dominant bias: Bullish

The Euro is not strong as such – only that the Yen is weak enough to allow this cross to rise upwards. The rise has been significant enough to generate a very formidable Bullish Confirmation Pattern in the market. On Friday, October 31, 2014, the price closed above the demand zone at 140.50. With additional weakness in the Yen and the further exertion of buying pressure, the market could reach the supply zone at 141.50 this week.

This forecast is concluded with the quote below:

“A trader is one who actively speculates on the market movement, drawing upon research and/or discretionary judgment to anticipate changes in prices.” – Dr. Brett N. Steenbarger

Source: www.tallinex.com

Learn from the Generals of the Markets: http://www.amazon.co.uk/Learn-Generals-Market-Azeez-Mustapha/dp/1908756314