Monthly Forecast on Gulf Keystone (February 2014)

PUBLISHED: Jan 28 2014 @ 14:53 | Comments (0) | More info about Azeez Mustapha

Gulf Keystone stock (LSE:GKP) has been going south, though it is not likely that it would go below the support zone at 150.00, which is a target for the bears.

There has been a ‘Death Cross’ in the chart as the price crossed the EMA 200 to the downside. The EMA 10 has also crossed the EMA 200 to the downside, affirming the current weakness in the price. The price could go lower towards the aforementioned support zone, but it may rally massively from there.

Conclusion: On Gulf Keystone, the Big Picture for this year is bullish, but that does not mean that sellers cannot gain from occasional large pullbacks in the market. Some interesting stocks pulled back by about 40% last year and made surprise recovery. That is because of the Big Picture (which was northward). I think it’s helpful to learn from others’ winning principles. The most frequent headache gotten by speculators happens when crazy movements occur in the market and an order that would go in one’s direction is automatically smoothed abruptly. That is why it is OK to consider volatility with one’s stop and ride the bias for as long as possible, thereby gaining a lot.

“There’s a strong urge to contemplate the past and worry about the future. It seems wise to do so, but looking at your past often gets you nowhere, especially in trading. And excessive worry about the future often distracts you from what you need to do right now in order to ensure future success.” – Joe Ross (Source: Tradingeducators.com)

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