GXY 0.00% $5.28 galaxy resources limited

Chart, page-22581

  1. 1,861 Posts.
    lightbulb Created with Sketch. 1473
    Absolutely. The fundamentals drive the movement of the share price but to what extent and for how long is generally governed by the technicals in the short to medium term - i.e. what looks and feels right due to past price action and timeframes. This is where the Fibonacci ratios come in to play - we can't escape them, they are everywhere. Literally making up our DNA.
    So you might have a stock that's on a decent uptrend with positive sentiment in wave 3 and approaching 1.618 x the wave 1 length, but another positive annoucement and it continues towards 2.618 x wave 1.. The market will generally tend to slow around that point but if a left field positive announcement drops before it turns then it may continue to the next fib point or thereabouts.
    As to whether we are now in wave 4 rather than a post wave 5 ABC correction - that is possible. It has crossed my mind. I'll take anther look when I get a chance and check the ratios to see what is more likely.
    The pattern at the recent high did look a lot like an ending diagonal trtiangle wave 5 pattern however so I'm temding towards being in the ABC correction now.
    Also quietly hoping that is the case since that would also mean this ABC correction is wave 2 of 1 degree larger again, meaning at the end of it we enter wave 3 of that series - which is the big one with a lot of room to move.
 
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