#Brent #SP500 Like many in the oil industry, GKP have not experienced a good pandemic. We fear things are about to get worse for the share price, trading around 71p at time of writing. Or, to be fair, 0.71p thanks to a 100:1 share split back in 2016 with a movement which completely failed its attempt to make the share price sound more respectable!
The immediate situation is fairly brutal with weakness below 70p calculating with the potential of reversals to an initial 60p.
It’s at this price level where things get quite scary, even more alarming than the criticism which (used) to be received from the gang of bullies who used to “talk up” Gulf Keystones share price in internet chat rooms. Disagreeing with their narrative would generate complaints, threats of boycotts, letters to editors, and some fantasy conspiracy theories. Thankfully, this grouping appears to have emigrated to pastures new, hopefully learning the lesson that gravity exists, regardless of their opinions. Unfortunately, their enthusiastic support for a failing share price doubtless has trapped substantial numbers of naive investors, folk who once believed internet forums could be trusted.
Our concern above the 60p level comes, should the price close below this level. In such a case, we’ve two quite distinct scenario with each providing exactly the same “bottom” target for this share price. When this sort of thing happens, we tend pay quite a lot of attention as the drop target tends prove correct, ideally along with a rebound when the target is achieved.
In the case of GKP, closure below this level works out with a bottom potential at 25p, a price level which should prove useful to those awaiting the worst.
At present, Gulf Keystone needs exceed 81p simply to exceed the downtrend formed since the Coronavirus dip in March of this year. Such a miracle calculates with an initial recovery target at 90p with secondary, if exceeded, a visually pleasing 98p. This challenges the highs since Covid-19 hit but more importantly, also takes the price above a downtrend which dates back 4 years. Closure above 98p shall, we feel, prove game changing for GKP’s recovery prospects.
|Time Issued||Market||Price At Issue||Short Entry||Fast Exit||Slow Exit||Stop||Long Entry||Fast Exit||Slow Exit||Stop||Prior|
21/09/2020 FTSE Closed at 5804 points. Change of -3.38%. Total value traded through LSE was: £ 5,288,811,181 a change of -43.99%
18/09/2020 FTSE Closed at 6007 points. Change of -0.69%. Total value traded through LSE was: £ 9,442,217,884 a change of 120.95%
17/09/2020 FTSE Closed at 6049 points. Change of -0.48%. Total value traded through LSE was: £ 4,273,425,233 a change of -23.19%
16/09/2020 FTSE Closed at 6078 points. Change of -0.44%. Total value traded through LSE was: £ 5,563,460,983 a change of 15%
15/09/2020 FTSE Closed at 6105 points. Change of 1.31%. Total value traded through LSE was: £ 4,837,644,674 a change of 35.92%
14/09/2020 FTSE Closed at 6026 points. Change of -0.1%. Total value traded through LSE was: £ 3,559,218,269 a change of 1.56%
11/09/2020 FTSE Closed at 6032 points. Change of 0.48%. Total value traded through LSE was: £ 3,504,460,601 a change of -8.69%
Outlook Updated Today.
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