GKP

uk.advfn.com/p.php?pid=chartscreenshotsh...hhnY/&symbol=A%5EAPT

Looks almost perfect from a trendline perspective doesn't it? SP downtrend halted by the convergence of the long term rising support line from 2009 (red) and the short term falling channel support (blue).

Add that to the positive divergence on both MACD and Moneyflow and things look rosy, yes?

I am not convinced as there are plenty of negative factors on this chart:

1. Death cross of MA50 below MA200 at a resistance level
2. Engulfing candlestick pattern completed on Thursday
3. And the biggest killer - very poor volume on the turn.

I can't highlight the poor volume over the past few days enough, especially yesterday. Was this distorted by Q1 end portfolio tidying, or lack of it? We should have had the same reaction as we did at 161/162 in late December, a large bounce on good volume from 173/174.

This is the last line of defence because if the SP breaks the red long term support line then it is in no mans land. A break below this mark will leave endless downside possibility.

This needs a volume rise next week or all bets are off.

F4T

I know this going to be contentious so I will ask this quietly but is anyone bearish on GKP in the long term?

The reason I ask is that to me on a weekly basis what is forming is a continuation or symmetrical triangle!?



stockcharts.com/school/doku.php?id=chart...symmetrical_triangle

I know it has got a bit of work to do yet but it is making me very very uneasy. Especially because the weekly P&F has targets down to 56p (which are active) in line with the candle chart if it was to break out to the downside in a couple of months.



Is there a wave count or anything any one can suggest that blows the bear scenario out of the water?!! Please!!

Best wishes
ft

I see little cause for alarm just yet. The 172 bounce hit the 138.2 fib extension almost spot-on. I would now expect a slight retrace before resuming the downtrend toward 161, which my chart shows as the support trend line from 10.25 thru 87.00. This mark should be reached around the beginning of June. I'm not up to date with the court hearing but, I would have thought that might give enough time for the judiciary to announce their decision. If the decision is in favour, and shipments via Turkey look like becoming a reality this must bounce north.

If the decision goes against GKP there is a lower trend line indicating a possible drop to approx 80p. If this happens I'm gonna cry And I suspect I will not be alone:(

Trend line looks like its getting weak. Its been hovering around this for a few days now so strength is going. I suspect that its gonna go to the lower channel at 166 and then the 161 area which should give this a bounce for a first attempt basis trade. Once that goes the all important trend line at 150

Yep, it is certainly weakening but the way it is holding is testament to it being the last bastion of long term support. Yesterday was the first close below.

Nevertheless, no stock can withstand persistent and strong weakness in the main indices, no matter what the technicals say.

I still think it has a strong chance of holding, but the indices need to relieve some pressure after a much needed retrace.

F4T
PS: Jackozy, you still owe me a beer

Jackozy, you owe a beer to F4T