Monday, 1 September 2014

Gulf Keystone filling the gap

One of the easiest ways to make short-term money on shares is to predict gap fills and buy or sell accordingly.

A clear gap arose with the sharp drop on opening trade on 28th August. The gap is from 82.48p to 77.51p. We do not need to check whether it is fillable, because the subsequent price action ever since shows that the market is trying to fill the gap, even though that is counter to the prevailing trend.

A determined attempt was made this morning with the opening spike, but it fell back. It is therefore highly likely that (a) the price of 82.48 will be reached, and (b) once reached, the share will resume it's downward trend.

These are not large price movements, but they are very reliable. Therefore I have taken a larger than usual long position in GKP in the short term, with a target price of 82.48p where I will sell.

GKP Gap Fill

Of course I could be wrong and you could draw a trendline downwards now, which the last couple of hours price/action would support. Therefore I have a tight stop of yesterday's LOD 76p.

1 comment:

Please leave a comment. They are moderated and spam (links to your site) will not be published.