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.
GXY Price at posting:
$3.37 Sentiment: Buy Disclosure: Held
