GKP

Hi MtM,

You're welcome and I apologise if I was patronising in any way - certainly wasn't my intention.

Your stop just below 100p makes sense from a risk averse point of view due to Friday's and Monday's lows (and yesterday's inside bar) but there's a fair chance you could get taken out in the formation of a higher low. Better to have stops below 86p but that depends on your positions size and attitude to risk.

Given that inside bar, the key short term levels are 100p and 110p though trading breaks of those levels ought to be treated on a short term basis. There is no buy signal on this stock at current levels (and I suspect it has some time yet to go before there will be one).

Resistances: 120p, 127p, 134p (Fib), 138/44p (gap).

Supports: 86p, 64p (I don't think we want to consider lower do we?)

I do think this is either at the end of, or near the end of, the big drop from 450p but that's based on my interpretation of the waves. Technically it's really not in a good way at all imho.

PS I did used to post on III under this name but never on those BBs.

Hi Jacko.. would be grateful for your view on this "drop from 450 " . Is this the completion of wave 2 of the EWT ? and that you expect a primary wave 3 to start sometime soon and go higher than 450 ? i remember you had mentioned ~ 700p some stage.. is that number still valid from EWT perspective or has it been negated due to the huge fall in the sp. thanks a lot.

Hi Jackozy,

No you weren't patronizing in at all, constructive criticism.

I have paid for a premium account as you suggested and will at some point sell GKP at a break even or small loss.

I have placed a stop loss at 98p this is likely to get taken out tomorrow looking at my amateur chart. Do you think the gap won't get filled? The MACD is turning positive and the RSI is still oversold. Technically this must count for something?

[IMG] imageshack.com/a/img23/5747/gq19.jpg [IMG]

Hi Minethemoney
why did you put the stop at 98?????...Cant see the reason for this level.
Stops should always be placed below a support level. From current levels the nearest support is at 86 so the stops should go just below this level.Maybe 84...
As for the gap getting filled...Its always possible but gaps can some times take years to fill. There is also a gap at 53.75 so there is gaps that can be filled in both ways. The higher gap at 143 will be strong resistance now as this has 2 levels of resistance together so will be a stumbling block for GKP.A good area to short this on a first attempt.Also 126 is strong resistance as well as that level has history.
The green light for GKP will come once a 123 low forms and higher highs follow. This has not had one for a while now so thats what you should be looking for before buying ..
If you like a share, then the only place you ever buy into the company is at a support level. Dont buy at any other level,by doing this you are buying with the crowd of technicians so your odds are better.
Most beginners will just buy at any price then they will argue the point from a fundamental perspective.
Always Buy at support and nothing else.


dl.dropboxusercontent.com/u/4899609/gkp27thmarch2014.png

Support: 86,,,64,,,53.75(gap)
Reistance: 126,,,143(gap)

"Always Buy at support and nothing else."

Some great advice on here, but I am going write this down where I can see it most days.

Its such a simple thing to do but most people dont do it. People use emotions to trade and hence there bad trades. Its easier said than done..lol

manfrombrussels wrote: "Always Buy at support and nothing else."

Some great advice on here, but I am going write this down where I can see it most days.