GKP

Beautifullly summed up

This broke out beautifully yesterday with a 123 low. Pure technical s .You cant predict this if you were a fundamentalist Eat my chart
all jokes aside this was very bullish yesterday and real strength will come once 167.8 is breached as thats the top of that stubborn channel top thats been in play since the new year.
It seems that all the technicians were aware of the 137.5 level.No matter what way people want to spin this its always in the chart.The smart money was waiting for the first higher high to enter this share. Thats the only way to trade really as it gives the green light to enter and by this method you wont catch a falling knife as much (you should not really catch a falling knife as stops are used below the 2 point) .Obviously stops are still important and now this trade should be a free trade .
dont get emotionally attached and dont listen to all the hype from the discussion boards on iii. We all know how crazy all those kids are
As i type GKP is fighting with the trend line...
Resistance....154(old trend line).161,,167.8(channel top),,189.37
support....145,,137.5,,126,,119

Hi SE,

Yes, I think that's possible as it's also close to the 38.2% Fib which is at 146.84p. In my experience it's quite common for a 61.8% retrace to bounce off the 38.2% level first on the way down.

A drop to 139p would still be bullish IMHO as long as it holds.

Hi Jackozy - Would you expect a bounce off the Gap Up from this morning?

OK, we've pretty much hit 161 (159.5p) so now the question is: was that 5 waves up from 126 to 160 or 3?

The rise from 161p to 228p looked like 5 waves to me for all the tea in China but as it turned out it must have been a three.

The best test for this now is to see whether 139p holds as that's the 61.8% Fib of the move from 126 to 159.5p. 139.25p is also a support from that initial drop from 450p.

I've closed my longs at 159p anyway as that was an easy level - even if it was wrong I could have just jumped back in on a break above 161p - and taken a small short from 159.25p with a tight stop. Let's see what happens now, eh?

Syrian,

Jackozy is quite right: there is every chance this will drop back today, and could well make your target figure. My earlier response was in relation to the overall wave and not the movements within the wave. Sorry if I was misleading.