Analyst 'unusually optimistic' about Gulf Keystone shares
3rd October 2018 09:09
by Alistair Strang from Trends and Targets
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Investors this year have had something to smile about as this oil explorer has seen its share price make good progress. Chartist Alistair Strang shares his optimism on potential upward movements.
Gulf Keystone (LSE:GKP)
Once the lawn has been given its last cut of the year, an inevitability establishes itself when realising the next big deal ahead is Xmas. While always something to look forward to, the chaos in the intervening period can be a nuisance. In the case of Gulf Keystone, we think it's had its equivalent of "the final cut", hopefully saying goodbye to the reaper and instead looking forward to some good times.
We can hope!
Visually, it appears 304p is quite a big deal to the market as the share price has not been allowed, thus far, to travel beyond such a level. As a result, it seems sane to assume this shall prove to be a trigger level for the future.
This being the case, the immediate situation is of movement above 304p taking the price into a region where 332p becomes an initial ambition. If bettered, our secondary calculates as a longer term (or next day!) 363p.
From our perspective, the chart inserts show a fascinating series of price movements, something GKP has unfortunately become used to. The share was forced downward with a gap movement at the end of August, this manipulation coming with the presumption the price was being held back from breaking the downtrend since 2016.
As moves show, despite this throttling of ambition, the price has now crept through the blue downtrend but effectively accomplished nothing since. This creates our assumption it needs better the previous high of 304p before some upward movement will become a reality.
For us, we are 'unusually optimistic' about GKP's future potential, even to the point of showing 516p on the chart in distant hopes. However, there's also a bit of reality worthy of mention. If it ain't goin' up, it's goin' down!
Despite the presence of a red uptrend, currently at 258p, the share really needs to trade below 240p - the prior dip - before we'd dare exhibit alarm for its future. In such an event, we'd need start muttering about 180p and below.
Source: Trends and Targets Past performance is not a guide to future performance
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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