Monthly Forecast on Gulf Keystone (August 2015)

PUBLISHED: Aug 04 2015 @ 03:04 | Comments (0) | More info about Azeez Mustapha

Gulf Keystone shares (LSE:GKP) are now in a dicey situation. The price has been moving sideways for the past several months, trying to consolidate further south. This is currently not a directional market at all; it is a boring market. The butterfly tries to imitate the bird, but it can never be like the bird.

At the end of the last month, the break below the lower Trendline proved to be a false breakout, for the price has returned into the space between the upper/lower Trendlines. There would be an eventual break above the upper Trendline or below the lower Trendline. At the present, the RSI period 14 is almost at the level 50. There is no signal in the market.

It is logical to stay away from this market until there is a direction bias. It can be said that the price has formed a strong base – a breakout to the upside could harbinger a strong bull market. On the other hand, there is also a possibility of a breakout towards the south, because the price is not too cheap, contrary to what some may think.

In case the price goes upwards, do not expect your portfolios to gain huge profits overnight. This is a long, slow process with forward progress, meltdowns, and more progress.

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