GKP - Research

Nice call KK. Well, a bit of everything this morning. Island reversed as you noted it might, but I was glad to see it form anyway as it looked likely from my analysis.
Key for bulls is that the downside gap closed. If this had stayed open it would have proven very stubborn on the next rise, as we have seen with the other upside gaps.
I fully expect this to drift now down to my targets as interest wanes but the downside gap close opens up both ways as being possible. I expect indices to have one more dip before a rise into year end. It this happens it should give stocks some impetus.

Will post again when we meet another crossroad.

GL
F4T

...Actually, not too disimilar to Diver's chart.

screencast.com/t/F79ilHjSUVRc

Laters.

F4T - No problem - Just didn't want holders getting scared when I know such a pattern can reverse quickly as it has already. As you said, the time to buy was below 50p. Favouring my first scenario now, with the EW count.

GLA

dl.dropboxusercontent.com/u/7238706/Gulf...td%20%28daily%29.png

A possible scenario.....

Thanks for the info on island reversals KK. Interesting as in my experience they have always been effective.
If you strip out all the emotion and positive bias it is clear that this is over bought and extended. 100% in a month, asset value, crude prices, war and reversal patterns! The time to buy was below 50, not after such a rise. We will see very soon.

F4T - Just for a bit of balance here, According to Bulkowski, "the Island top or bottom has the worst performance rank of ANY chart pattern - Dead Last - regardless of the breakout direction."

thepatternsite.com/islandrev.html

So I wouldn't put tooooo much emphasis on that if it gaps down - only to reverse, as this pattern frequently does - hence the bad performance rate.

I can see a bull case and bear case here, for an exercise the other evening I drew some upward channels on the chart just to see what we might be looking at if the trend change is confirmed at some point. It's quite enlightening the interaction of wicks and open and closes with the trendline channels. Guess where it closed today? Bang on the bottom of the channel trendline. The target at top of channel tomorrow - the same as Trendfriend's bull flag target £1.....



screencast.com/t/UmdzDj6jT

Close call tomorrow, too many mixed signals, I can see the case for one last leg up adjusting EW count and upward channel support, and can see the bear case for a pullback as I've mentioned below....tomorrow will tell.

GLA