GKP

Nice stuff F4T, pretty much in agreement..... just need to monitor now

SP is once again approaching interesting areas. Inspired by WS and for fun I thought i'd try to extrapolate how it might move in the near term. I don't think it will go as low as WS's chart but the 50's are certainly in range. The move I demonstrate actually has a higher low before a move up.

uk.advfn.com/p.php?pid=chartscreenshotsh...UCBeS7e5h5%2FZbQg%3D

So where are we currently? We have a trendline which forms part of a falling wedge that is holding the sp ever lower. We should see 75.50 finally act as resistance. Shadow trendline (turquoise) broken. MACD has rolled over with a negative tick. RSI has room to move before support (or resistance). 73.75 has been tested twice, so should fall at the next attempt.

My red trendline starts in 2009 and provides support in the 69/70 area close to a recent low, forming a nice area for a short term bounce. We then have a higher low in the low 60's (say 63) before a breakout of the wedge northwards. Should this (blue) support line be pierced to allow a double bottom at 61 we might then get a death hook which will give more power to the move higher.

An engulfing candlestick today would help things along.

I too do think that GKP could finally finish its long downtrend soon and certainly this year. Might be at 63, could be at 61 or even the open gap in the low 50's.

Let's see how the crystal ball fairs.
F4T

Hi KK,

Its a diagonal triangle that im looking at, some call it wedge...2 converging tl's and formation of waves within 3-3-3-3-3 (5 waves) overlapping. usually occurs during a strong downtrend ABC correction and potentially signalling and end of the trend in the ABC(maybe)...

With regards to your question of 3 shorter than 1 etc... well 3 can be be shorter than 1, 3 cannot be shortest wave as part of the impulsive waves which are 1,3 ,5.

The target of move is based in fib and currently while price remains with in parameters, i have no option but to consider the probabilities of this move, will it happen, we just have to monitor and assess.

In the meantime price has hit a range 64/54 p (esp if 118p got taken out)range projected many moons ago for potential completion of this correction, we are in that range now.. its been one hell of a down trend.


Regards,

WS

WS...

Just thinking, on your projected counts down within the green wedge, your projected wave 3 is way shorter than wave 1. 3 should always be longer than 1 so.... it should almost be where you have projected 5. Not sure how this can be. Are you using fibs or is it just a rough approximation?

Thanks in advance

heres the chart

finished with a nice hammer!

Long @ 77.50
SL is below 73.50

Not a Buy advice as GKP is far from an established uptrend

Its purely day trade
I will be in & out quickly
Take profit order is at 89

Will post a chart later