GKP

Hi OG,

I think remo and diver have answered you question but here's my own take.

Here's a weekly chart showing why 161p is important:


dl.dropboxusercontent.com/u/20815047/GKPweekly15_05_13.gif

The 145p and 155p levels come into play as shown here:



dl.dropboxusercontent.com/u/20815047/GKPdaily15_05_13a.gif

145/6p was the bottom of the previous channel down (and the Fib extension as diver mentioned) and 155p is where the old uptrend support is now and this could act as a resistance.

The question we all want to know the answer to is this: Is this the start of a new trend up or just another correction with a final low to come?

For me, a close above 161p would make a new low below 126p quite unlikely (but not impossible) and would strongly suggest a new trend up.

A drop below 137.5p would be the opposite and suggest that this move could be the wave 4 we've discussed.

Those are the key levels now as far as I'm concerned.

Interestingly, it's quite normal after a big marubozu candle like today's for there to be a retrace half way down (a la School Remo), and that would be at 140p or thereabouts which is just above the key level of 137.5p.

There's really no way of knowing with a good deal of confidence until one of these levels gets taken out. The volume today was pretty high, though. The highest on an up day since 3rd July 2012 when the SP moved nearly 50p in the day.

PS You can see diver's 161.8% Fib extension on the hourly here, but look at that bearish engulfing candle too!



dl.dropboxusercontent.com/u/20815047/GKPhourly15_05_13.gif

Well Done!! Remo for the call

Got to admit I'm on with Greenhill and don't quite understanding the move up. I was watching the trades today, it looked like more were being sold that bought. a lot late trades appear to be sell too.

Could it be that a lot of buys were though other types of trading spread trading and CFD trades
What are the views on that?,

What levels,should be consider to watch out for given today's movement. entry and exits and new stop loss points

Don't want to get caught out got quite a few meeting over the next couple of days and will not be able to keep a close eye on the share price.

regard Tej

Syrian Empire,

If this is a 3 of 1 then expect a retrace of 38.20% but..... this is GKP, so anything is possible

Hi On Greenhill,

161.00 is the low of the previous completed down move at, what I label W. The reason this is important is because it is both a significant resistance and would certainly confirm the new up-trend.

145.98 is the extension up, from what I believe, is a possible wave 1 of 1 of a new trend. A wave 3 needs to extend by a minimum of 161.80% of wave 1 for me to classify it as a wave 3.

The RSI has already broken above the trend line of the previous move down from X, indicating a change of trend, but I do need to see a five-way move before the trend change is confirmed.

The move down from B at 203.00 is a move of 7 swings, which is quite normal for a corrective wave. The level 126.50 was indicated by fib expansions of B,W,X and X,A,B.

I hope this is of some assistance.

I bailed out at 146.00 today - expecting a pull back to retest the breakout area around 137 - However, it was quite a bullish finish to stay above the 145.
Any insight on how this might play out tomorrow from a TA perspective? Does the fact it retraced to 143.5 and bounced rule out this area being revisited tomorrow?

Hi on greenhill
137.5 is the 123 low breakout point that I mentioned earlier . this is the area that signals higher highs. You need higher highs for an up trend.
With regards to the other areas I'll let the others answer those points.