GKP - Research

Trendfriend,

this has been bearish since 450, nothing has changed.

The key with trading is to take advantage of peaks and troughs. Don't try and pick bottoms and with companies like GKP, never look medium term and certainly don't invest. History has born that out.

Todays action was pleasing and IMO certain after supports broke at 78.25. We should see volume to 15MM today and that was my mark for a short term bottom. The two most important indicators are always price and volume. I expected to see 64 (possibly tomorrow am but IMO unlikely now ) but 67 is good enough for me as it is at the CPR level for asset value.

The downtrend will likely continue, especially since we now have a lower low now, but I expect upside in the interim, same as the double breakout from the falling wedge a few weeks ago.

Traders and the city love this share, so it will continue to give excellent returns for the nimble. Always has done, long or short.

Let's see what happens.

F4T

This is looking very bearish, one to avoid, any bounce is likely to be short lived.

Next stop here, 64p, and then the gap imo.
The chart.
uk.advfn.com/p.php?pid=chartscreenshotsh...+Uk8=&symbol=L%5EGKP

This is from a couple of weeks ago, when the price was around 80p.
The lower targets look likely here.
uk.advfn.com/p.php?pid=chartscreenshotsh...3s%3D&symbol=L%5EGKP

There's better risk/reward trades out there, this is one to leave alone for now imo.

Regards,
Trendfriend.

Biggest worry is that Spreadbet Magazine have this week tipped both GKP and XEL for rises - surely the kiss of death!! lol

Well, after a lot of dithering we finally reach the next crossroads. RSI support broke yesterday as did 78.25 support. One might expect this level to form as resistance should it close at/below this level.

I inserted a new trendline which gives an interim support at 76 before 72.25 and 64.

uk.advfn.com/p.php?pid=chartscreenshotsh...v0%3D&symbol=L%5EGKP

Volume is key and will tell us how low it will go.

F4T

Ps: Fun and games over at AFR.

This should be it. Third test on 78.25. Let's see.

Hi orsotoro
Yep it is a very significant area. 64 is very strong support.
The reason i have not mentioned that level is ,im talking about a very short term trade based on a possible double bottom and that comes in at 72. So having the stop below 64 would mean a huge risk to reward .Even thou that would be the ideal area to have the stop at. So if 72 fails as a trade then the next best level to go long is at 64.If that level breaks then GKP will be in big trouble.
I should have mentioned 64 but im glad there are people like you that will correct me.

orsotoro wrote: Hi Remo,

Why would you not view the mid 60s ( 67 on the weekly ) as a significant support level ( the 2010 low ) ?