GKP

Hi All,

some good comments here today.

Have had a good look at the charts again here and things don't look good at all. There are very few positives here or in the markets in general, which are broken - the US particularly and this drives the other markets.

The negatives are well documented on the previous posts but we must never give up on the charts. There will be a bottom as stocks cannot keep falling forever (aside from serial share re-denominations lol!). They just go out of business and companies with assets don't do that. They are sold off cheap. I am just putting some perspective here.

Technical analysis tells us what market participants are doing and this often gives us an indication as to what might happen going forward. That is why we are on this website, to share those views.

So what do the charts show us?

The daily: pretty much all negative until the well documented supports below 40,37,18.50. RSI support broken / all trendlines broken. The only small positives are the volume friday (11MM) and some medium term MACD divergence from April.

The weekly: Weekly always trumps the daily. I attach a chart for this one as it none have been posted for this time frame yet.
uk.advfn.com/p.php?pid=chartscreenshotsh...UQ%3D&symbol=A%5EAPT

Chart also looks terrible, but with a couple of positive elements. The MACD divergence remains plus some marginal RSI divergence. Also RSI is at trendline support. There are no gaps on the weekly, so support below is at 37 (per Remo) and 21.50 (May 09). Weekly volume also not bad for last week.

The Monthly: Monthly always trumps the weekly. Remember though that the month has only just started, so we are assuming that everything stays the same until 30/10/14. But I will post it anyway for discussion purposes.
uk.advfn.com/p.php?pid=chartscreenshotsh...4o%3D&symbol=A%5EAPT

Similar to the weekly, in that chart looks terrible but RSI (currently) at support. Minor divergence on histogram only.

My point is that we never abandon the charts even in market turmoil as sometimes it is all we have. After the past 6 years we are now experts in turmoil


So, from all the charts, on the higher timeframes the main support trendline has been broken but the RSI is at support. RSI generally leads price, i.e. breaks first. There is also some divergence that has been there for a while.

My key indicators are always price, volume and RSI. I look for all 3 to agree before acting.
Volume has been poor recently on the fall. I have documented this well on this website. Fridays volume on the daily wasn't bad (11MM) but once again not enough on it's own to indicate to me a possible bottom.

I will be watching volume carefully tomorrow am when I expect GKP to set a new low (given US market activity Friday and an expected follow through in Asia). A candle with a longish tail and maybe a days volume of 10-15MM might tempt me, but otherwise I will remain in cash.

My overriding point is that general markets always turn as this one will and a turning tide raises all boats. The question is when will it turn?

In the above I have scratched around for some positives in a sea of negatives so readers please take that on board.

F4T

Hi F4T

Interesting action this morning.

Do you think we have reached the bottom? Resistance at 53.75p?

Thanks

As to a bottom, it's far too early to call. Let's see where we end up with on volume and price. Volume promising so far.

First resistance is more likely to be 54.25 but if we were wanting to catch a decent rise as it withers, I have a trendline in the 59 area. 54.25 is safer though. However high the bounce is today IMO we will definitely see 50/low 50's again, so it makes for good trading.

GKP has to finish above 54 before you can say the worst is over. Even then its not guaranteed.
If 54 is respected ,ie,, holds as resistance then further falls will come. So first the share price must break above 54 and finish the day above it.Even then you dont buy it as you need higher highs first to signal a change in the trend early.Basically a 123 low .
short termers can still trade this share . Long termers not yet.
currently bullish engulfing pattern on gkp but this has to come at support so not the real deal for me.


dl.dropboxusercontent.com/u/4899609/gkp13thoct2014.png

Hi Remo,
I have a support line at 46.15p from 2005 which seems to be holding at the moment. Could you please check with your charts as I am using Prorealtime.

Thanks,

Mark

Hi mark
yep spot on mate..
The level with the strong support is 43
ive shown a monthly chart to see it better..


dl.dropboxusercontent.com/u/4899609/gkp13thoct2014a.png