Keep on Selling Gulfsands Petroleum!

PUBLISHED: 11 Nov 2014 @ 23:00 | Comments (0) | More info about Azeez Mustapha

Gulfsands Petroleum shares (LSE:GPX) have been falling and it would be logical to keep on selling them. As the shares fall further, buyers are being hit repeatedly because they refuse to honor the power of the bear at the moment. The viper does not tolerate insults.

In the chart, the ADX period 14 is around the level 20, meaning that the momentum in the market is very low. But the momentum would soon become strong. The DM- is slightly above the DM+, showing that buyers are being caught on the wrong side of the market flow. The MACD (default parameters) has both its signal lines and histogram below the zero line.

Essentially, there is a Bearish Confirmation Pattern in the chart – which would become particularly strong as the ADX line rises above the level 30. The price may thus end up reaching the support level at 20.000. Some may contend this possibility. However, you do not need to be a pro before you contend trading facts. This does not mean we cannot be wrong, but it means we would come out victorious. We do not worry about inevitable negativity as long as we come out victorious in the long run.

This forecast is ended by the quote below:

“One of my broker/trader friends wins only 27% of his trades, but makes lots of money every year. It’s daunting to think about it, but you may see many more failures than successes on your way to becoming a seasoned, master trader.” – Joe Ross

Learn from the Generals of the Markets: Market Generals

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.