As a result of crumbling financial markets, confidence in resources and resource stocks have dwindled. But with this bail-out having gone through, I think it will inspire a relief rally in the next couple months (although, I don't think it will solve the underlying problems - flawed investment banking models, falling house prices, swelling govt debt, no savings, etc).
Onto GBG, something worthy of note is the descending wedge (a long term bullish signal) that has formed since the completion of the head and shoulders pattern on the 6 month chart. If the technicals are anything to go by, we should see an upward break out from this pattern. The slow stochastic also indicates the price is primed for an upward move. Take caution because sharemarket volatility can easily over-ride any charting signals.
DYOR.
GBG Price at posting:
64.2¢ Sentiment: LT Buy Disclosure: Held
