The short-term downward pressure can be explained as follows: - GXY has already had an amazing run up in the past two weeks. It can't keep running without taking a breather. I see it as a healthy consolidation. - GXY hasn't been at these levels for about 5 months, so you're bound to see some hesitation. - The fact that production has (as expected) commenced can't just wash over the fact that they've recently (and unexpectedly) announced plans to raise more finance. Although the amount of financing is not unusual, it's not exactly a positive development.
However, based on GXY's resource and the upside potential in lithium prices, I still believe that GXY is undervalued. Thus, in the medium to long term the price should go up.
GXY Price at posting:
45.4¢ Sentiment: LT Buy Disclosure: Not Held
