Gulf Minerals Corporation Ltd (ASX:GMC) Trading Outlook

Gulf Minerals Corporation Ltd (ASX:GMC) Trading Outlook

Gulf Minerals Corporation Ltd (ASX:GMC) Trading Outlook

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 0.01.

The projected upper bound is: 0.02.

The projected lower bound is: 0.01.

The projected closing price is: 0.02.

HEFFX notes Strong Candlestick Formation

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.

During the past 10 bars, there have been 2 white candles and 2 black candles. During the past 50 bars, there have been 10 white candles and 6 black candles for a net of 4 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

GULF MANGANESE closed up 0.009 at 0.015. Volume was 3,782% above average (trending) and Bollinger Bands were 210% wider than normal.

Open High Low Close Volume___
0.007 0.016 0.007 0.015 339,446,336

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 0.01 0.00 0.01
Volatility: 552 350 286
Volume: 48,656,096 13,867,110 4,068,121

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


GULF MANGANESE gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.

GULF MANGANESE is currently 16.5% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect very strong flows of volume into GMC.AX (bullish). Our trend forecasting oscillators are currently bullish on GMC.AX and have had this outlook for the last 21 periods. Our momentum oscillator is currently indicating that GMC.AX is currently in an overbought condition.

Momentum Outlook

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 89.2857. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 89.28. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 72 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 429.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 23 period(s) ago.

Gulf Minerals Corporation Limited, formerly Gulf Mines Limited, is an Australia-based company engaged in the exploration and evaluation of mineral resources in Australia. The Company explores for gold and base metals. The Company conducts its exploration activities at Wollogorang in the Northern Territory and Ebagoola in North Queensland. In addition the Company has begun the assessment and exploration of its Braemore and Mt Stewart projects near Leonora in Western Australia. As of May 31, 2012, the Company’s areas of interest included Wollogorang, Northern Territory; Ebagoola, Queensland; Nowa Nowa, Victoria; Braemore and Mt Stewart. As of May 31, 2012, the Company’s 100% held subsidiaries included Hartz Range Mines Pty Ltd and Ebagoola Gold Mines Pty Ltd.

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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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