GKP

The way this has retraced more than 50% from 116.75, I now doubt this is a 5 way impulse move, rather an ABC....

dl.dropboxusercontent.com/u/7238706/Gulf...%20%281Hjuly2%29.png

.....The way I've drawn the extension on this chart will probably need amending as the SP progresses as there is no guarantee it has bottomed out at 97.25, even thought that marks a 50% retracement of the move up from 78.25. As it stands the extension shows a predicted 141.75 at the 100%, which is pretty close to the 140 resistance established from way-back.

Keep an open mind and let's see what develops. I'm certainly not suggesting this chart is set in stone, more a work in progress, and very much subject to amendment. It will be interesting to see what develops.

Hi Ian Just wondering what a three outside down pattern is or signifies...presumably bearish?

Hi Eddie,

yes it is a bearish reversal pattern. It does need confirmation if SP closes below 104.75. See attached.

www.candlesticker.com/Pattern.aspx?lang=en&Pattern=3212

One thing I missed on the last post. 97.25 has now been tested twice and is the key downside number short term IMO. A third test and I would expect it to fall. Conversely, it could prove to be a good retrace point as pointed out by Diver.

Key upside number is still a close above 109.

Cheers
F4T

Well Ian it did test and go below 97.25 but seems to have bounced off 96.75 ( or close) twice instead. Could that be another support or is this just a way point to further falls?

It is a key area (50% retracement of move). We will need to wait to see if there is a winner. IMO the trading below 97.25 just gives the bears the edge but I wouldn't want to call it given the minor divergences on the hourly. Let's see what happens.

I would expect more downside on this so I have withdrawn my orders. 90 support hit today but hourly chart shows the weakness. SP rose only to close opening gap but open and close were below trendline.

Candlestick chart
uk.advfn.com/p.php?pid=chartscreenshotsh...+YDg=&symbol=L%5EGKP

Price action clearer on line chart
uk.advfn.com/p.php?pid=chartscreenshotsh...+KVs=&symbol=L%5EGKP

One would normally expect a pennant like this to break higher, not lower.

F4T