Gulfsands Petroleum: March price channel target at 16p

Gulfsands Petroleum (LON:GPX) was in a former life a play on Syrian assets, but it seems that Columbia is the focus now.

Gulfsands Petroleum has understandably been rather under a cloud since the conflict in Syria, even though this company has interests in various geographies. They include Tunisia, Morocco and Colombia. Indeed, in the past few weeks it has been Colombia and Morocco, where it is looking for extensions to licenses, which have been the focus.


The stock has already doubled over the past month on hopes that Gulfsands Petroleum is a recovery play, and given that the situation looked so bleak one would imagine a short squeeze is well under way. Perhaps the give-away in terms of the surprise reversal in the stock is that from July to October the price action flatlined as if this was a dead situation.

As for the upside potential, it can be seen on the daily chart that there has been a vertical move to take the RSI towards an extreme 90 plus out of a 100 level. The implication is that any setback towards the latest intraday support at 6p can regarded as a buying opportunity. The 1-2 month time frame target would be the top of a rising trend channel from March up to 16p.