GKP

Here's my take:

On the daily we had a nice bounce off my red trendline and a perfect backtest on RSI which I had been waiting for. A bullish harami points to potential upside on monday and I expect 86.50 to be the short term low.

uk.advfn.com/p.php?pid=chartscreenshotsh...Dly8=&symbol=L%5EGKP

We can see the technical breakout on the hourly, the same trendline forming another falling wedge. The positive divergence on MACD and on RSI (in the apex) gave the breakout power.

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

The technicals worked beautifully on GKP again IMO.

Cheers
F4T

You can see how the down trend line has held gkp back. Clear to see.
There was a 123 low breakout recently on gkp . Thats what powered the move higher. Clear to see on the chart.
So this dont look to bad as there are signs of strength building. The green light for entry was the 123 low but if you did not enter then , then look for this to clear 110 and then the trendlines.
im not a holder as i missed the entry been busy.

dl.dropboxusercontent.com/u/4899609/gkp11thjuly2014.png

I would expect more downside on this so I have withdrawn my orders. 90 support hit today but hourly chart shows the weakness. SP rose only to close opening gap but open and close were below trendline.

Candlestick chart
uk.advfn.com/p.php?pid=chartscreenshotsh...+YDg=&symbol=L%5EGKP

Price action clearer on line chart
uk.advfn.com/p.php?pid=chartscreenshotsh...+KVs=&symbol=L%5EGKP

One would normally expect a pennant like this to break higher, not lower.

F4T

It is a key area (50% retracement of move). We will need to wait to see if there is a winner. IMO the trading below 97.25 just gives the bears the edge but I wouldn't want to call it given the minor divergences on the hourly. Let's see what happens.

Well Ian it did test and go below 97.25 but seems to have bounced off 96.75 ( or close) twice instead. Could that be another support or is this just a way point to further falls?

Hi Eddie,

yes it is a bearish reversal pattern. It does need confirmation if SP closes below 104.75. See attached.

www.candlesticker.com/Pattern.aspx?lang=en&Pattern=3212

One thing I missed on the last post. 97.25 has now been tested twice and is the key downside number short term IMO. A third test and I would expect it to fall. Conversely, it could prove to be a good retrace point as pointed out by Diver.

Key upside number is still a close above 109.

Cheers
F4T