GKP today failed to follow through on Friday's bullishness and we closed the day with an inside bar and back below 203p.The inside bar should be traded in the direction of the break beyond the limits of the covering candle so that should be long above 210p and short below 196p but beware the support from the last breakout point at 189.75p.There's also the possibility that the correction from 240p is forming a bull flag whose lower trendline meets that breakout point shortly and the main uptrend support in a week or so. Indicators, however, look bearish and further lower closes are likely to cause a breakdown of the RSI uptrend which would suggest to me that this is in a wave 2 down from 240p, perhaps to the 61% Fib at 171p.Supports are at 189.75p, 185p (trendline and doji) and 171p. Resistances are at 210p, 220p and 233p Original...

GKP hit an important level yesterday - that of the gap and main uptrend support. It held, but not very convincingly, leaving a doji on the daily chart so the direction will likely be given by the breakout of that doji in the short term.The main supports and resistances are:Supports: 187.25p, 181p, 171p and 166pResistances: 193.5p (we'll see that in a mo), 199p, 210p, 220p, 233p and 260p. Here's a 4H chart I posted in the comments to the last blog entry. It shows a possible pennant with an upside breakout on a close above 193.5p. Clearly, the SP is at a crucial short term stage here with little room for manoeuvre either way before it breaks out. Original link...

First here's the daily chart. We can clearly see the break of the uptrend support would gives cause for concern but there are also some bullish aspects to this chart so there are some mixed signals.There's clearly a descending wedge down from the 240p top which is usually a bullish pattern (called a pennant) and despite a dip out of it the sp still closed just on the wedge base.The last 4 days have also formed a very similar pattern to the period from 19 to 24 June with dropping price and increasing volume and if the SP does turn up here then there will be a positive RSI divergence which forms when RSI makes a lower low but price makes a higher low during an uptrend (this is often a continuation pattern).All of the above, apart from the trendline break, is a bit spurious of course, but there are...

A quick update on SLE as I've been told there's some excitement about it. This morning we've seen both price and RSI hit their downtend resistances which have held so far so this would have been a sell for me at that downtrend.I'll only consider a long here at the RSI support or on a price close (and RSI breakout) above that downtrend resistance. Other than that I remain neutral on San Leon. Original link...

Finally some price action to take note of in XEL after a lengthy period of sideways movement.Thursday saw the first close above the final downtrend resistance (there were others from higher price points which have been seen off with little impact). What makes this one appear different was Friday's price action.After a gap up on open, the price dropped back to test the downtrend and was bought back up to near the open forming a hammer and a successful backtest which should be seen as a sign of strength by the market.The only downside to this is that the RSI closed right on its own downtrend resistance, but this trendline comes from the all time high at 425p, not the high which formed the price trendline, so if this can be taken out we are likely to be in a new trend. The weekly chart shows that this is likely...