Chart of the Day: Gulf Keystone

It may be the case that the “experts” have got it right in suggesting that the latest rebound in Gulf Keystone is something of a death rattle for shareholders after the latest financing news. However, I wish this were not the case.

Gulf Keystone (GKP): Broadening Triangle Resistance at 7.5p

As a chartist, one has the luxury of not having to read the fundamental fine print as far as companies are concerned. Sometimes this can be a great thing, and of course, at other times it is akin to walking through the valley of death without the appropriate armoury. I have to confess I would love the Iraq-focused explorer to cheat death, but it does appear that long-suffering shareholders will be hit and hit hard, just as they have been for the past couple of years. Interestingly enough, it may be said here that everything hinges on a single number which has been in focus all day today. It is 7.5p, which is the top of a broadening triangle that can be drawn in from as long ago as the middle of April. In fact, we have seen the share price temporarily overshoot to the 8p level. But for the bulls and the optimists we needed to see an end of day close above 7.5p. Such a signal would suggest that the latest developments at the company could work in favour of shareholders. Alas, it does not appear that this will be the case. Nevertheless, just on the off chance it may be worth seeing if 7.5p is sustained over the near term. It is highly unlikely, but then again if the bookies can get Brexit wrong, anything is possible.