Chart analysis: Ascent Resources and Gulf Keystone

Ascent Resources (LSE:AST) plus GKP too

In keeping with the commercial spirit of Halloween, we should probably mention Gulf Keystone's () share price. It appears liable to give a fright to those shorting it as movement into the 120’s looks probable. The price needs to break 90p to throw a fright into our calculations.

As for Ascent (), it’s on the edge of doing something stupid. Suffice to suggest it dare not close below 1.875p as a bunch of folk who believe in “double tops” will assume the price doomed.

This often self-fulfilling prophecy comes with baggage, due to closure below signalling coming weakness toward 1.5p initially with secondary, if broken, at 0.91p. If triggered, the price requires better than the blue line on the chart, currently 2.2p, to cancel the prospect of a burial ceremony.

Hopefully, the 1.5p thing proves capable of a bounce, due to the proximity of the uptrend since 2016.

However, of greater interest is the potential should 2.2p be bettered. Currently trading at 1.9p, there’s surely not much required – aside from the inconvenient detail the price was forced down at the open of the 30th October.

Above 2.2p should prove capable of bringing fairly near-term oomph toward 2.67p. This visually provides a nuisance outlook as it implies any rise may falter at the level of prior highs, creating one of our hated glass ceiling scenario.

Only with closure above 2.67p dare we express real hope for miracle recovery coming, due to the attraction from 3.85p.

By any standards, this lot are proving complex. It seems reasonable to suspect the move on the 30th October is probably designed to slow things down, perhaps with a final death spike to challenge the ‘red’ uptrend before any miracle rebound.

Alistair Strang has led high-profile and “top secret” software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know “how it worked” with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang, Shareprice, or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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