** If you aren't interested in looking at charts, skip past this long post.
As we wait for further announcements from management, I’d like to display a
quick recap on the chart's performance over the last few weeks and a little story at the end.Whether you have some sort of experience in technical analysis (charting) or not, 47c was an extremely obvious price resistance (meaning, the SP just wouldn’t break and close above this price).
Let’s start by looking at the build up towards reaching 47c.
On the 20th April (before trading commenced), the SP rejectedfrom 47c and retraced a healthy 18% down to 39c (chart below).
On the 20th April (screenshot taken at 3:52pm), there was atop-up opportunity presented as the candle reversed from the trend line andready for another attempt at 47c (chart below).
Fast forward to 11th May, 47c got absolutely munched andthe SP hit 50c (chart below).
What I found to be interesting is when the SP hit a new 52 week high (52.5c), the RSI (strength index) was lower (see below arrow) even though the share price was higher (see red arrow). This means that the buying strength is slowing down, hence the pullback. The pullback to 43c was a classic top-up opportunity… as the SP retraced 17% (AGAIN) and reversed off the trend line (AGAIN). Currently the SP has closed just below the 50c resistance.
Little StoryMy mentor once told me one of Wayne Gretzky’s famous quote (mind you I don’t watch ice hockey and don’t know anything about this man), which stuck with me.
“Skate to where the puck is going, not to where it is”. Based on this quote, I found a pattern back in July 2022 when management was quiet, SP was declining to 17.5c, portfolio was significantly negative and I could only resort back to the chart to decide whether it’s time to claim the loss or buy more (see below).
What matters is the fundamentals of the company, however the chart gives you an idea on the trajectory and sentiment.
Compare the above pattern with the current chart (below) and boy doesn’t the build up look exciting.
GLTA.
