GKP

uk.advfn.com/p.php?pid=chartscreenshotsh...M1xc=&symbol=L%5EGKP

Looks good to me.... a close above those moving ave's @ 65/66p area, should mean this will push on imho....

Regards,
Trendfriend

Hey y'all,

Not really been much to talk about here as oil has been tumbling at such a rapid rate. I did scale in long from 54 - 49p with average of 52p for a little flutter on a spread bet, sold out for all of 1.75 pips as I had to go out this morning! LOL! I could have taken 5! Hardly beer money!!! It broke a small wedge to upside today which I'd been watching. CAO (Awesome oscillator) indicator has now gone red confirming the wave 2 proper, which I'd mentioned previously, doesn't mean it can't re-test lows though if the downward spiral of oil continues, but makes more sense now from an EW perspective...With a bounce of oil or continued positive news flow, I don't see why we couldn't kick off wave 3, depends on your risk appetite, but I was happy scaling in at these prices - gap left behind so it's a wait and see really, but if the bottom is in, wave 3 is gonna be a nice ride up, just a question of when? Not long though me thinks - unless it puts in a new low and then I'll need some new crayons for Christmas!!

This is the charts of crude light oil,
This is just heading towards its normal trading area so people should not be shocked by this.
Hopefully petrol prices should come down at the pumps to help out everyone even thou its all tax.
Its funny how prices at pumps drop so slowly yet when crude rises it moves fast at the pumps.
i remember when crude broke 100 dollars a barrel and price of a liter of petrol moved above £1 a liter. now its at 50 dollars a barrel and price of fuel is at £1.20 a liter so its obvious we are all getting robbed at the pumps by the governments.


weekly chart

dl.dropboxusercontent.com/u/4899609/crude15thdec2014.png

daily chart

dl.dropboxusercontent.com/u/4899609/crude15thdec2014daily.png

No point unless crude has bottomed.

Thanks Ian.

Would you buy if the price reached 42p or not even then?

We had a beautiful shooting star on 3/12 but it was the lower low on 1/12 that set the tone for the recent fall. 3/12 set a lower high to go with the (now) two lower lows. Key supports were 64 and 58.50 which fell without resistance, the latter very decisively yesterday. A break of the 61.8% fib points to a 100% retrace.

Today we bounced on the next support of 50.25 and this is of course now a key level.

Regarding crude, everyone was talking about possibly of $60 for WTI when OPEC stood firm, and that is where we are now. I had thus waited and thought that this level might find support so we will see. FOr E&P companies, the key is not in TA it is in which ones have high finding and lifting costs and thus a high b/e on crude. This is why Afren has been pulverised. We know that GKP's finding costs are very high (high DD&A) but what about lifting? Heavy crude, sulphur and trucking tell me they are not great. Does anybody have this number?

We will see a new bottom here if crude prices don't settle, but I certainly see 50.25 being pierced. If we close below then it's a quick descent to 42.25. Trendline support is at ~44.50 but I wouldn't count on that.

It is not a time to buy or trade until crude finds a bottom.

F4T