Interactive Investor

Gulf Keystone shares: The next move

He's called this stock right before, so what does our chartist think will happen this time?

19th February 2020 08:30

Alistair Strang from Trends and Targets

He's called this stock right before, so what does our chartist think will happen this time?

Gulf Keystone 

For many private investors, this lot must feel like watching a Party Political Broadcast, prompting the question of ‘how long can this agony last?’

Last reviewed in July last year, we’d proposed a bottom of 178p. It successfully hit this target on Tuesday. The big question now, will it bounce?

Visually, Gulf Keystone Petroleum (LSE:GKP) needs above 197p at present to exceed Blue on the chart, entering a zone where some proper price recovery becomes possible.

Such a miracle calculates with an initial meagre ambition at 201p with secondary, if exceeded, a more useful 220p.

While the visuals suggest a glass ceiling can be expected at 220p, closure above such a level allows for a longer term 251p. Beyond such a level, we shall need to stir the tea leaves again as the path to such a significant level will require scrutiny.

Unfortunately, it feels more likely 178p shall break anytime soon, provoking weakness next to an initial 170p with secondary, if broken, down at 153p.

We’d hope the calculation of a potential 153p shall prove incorrect as this will take the price below the dip at the end of 2018, solidly in a zone where negative news could swiftly drive 125p or 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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

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