I'll give you my opinion then. The charts indicate to me that the share price has lost momentum for the time being. Why would this be so? I’d suspect lack of news for a couple of weeks and/or a fear that the quarterly financial report is not going to be as good as expected.
If I was making a decision just based on TA, then I’d sell tomorrow based on what your chart is telling me. That way I’d be protecting all of my capital from a possible fall. Then I either buy back in later once the market has had a chance to digest the news, accepting that the buy back-in price if the news is good and/or well received might be higher than my sell price (which means I will have incurred an opportunity cost).
However I have noticed in the past that GXY has a tendency to trend sideways, as it did late last year. I have also noticed that the share price has a tendency to dramatically correct after these periods of inaction – again, as it did late last year. Something else I have noticed (due to following GXY every day on Hot Copper and other) is that the periods of inaction have been helped along by a concerted program of shorting (manipulation).
For my part, I will be staying long. My reasoning is that I am expecting both activity and financial reports to be reasonable; I suspect the share price has been held backdue to some selling by large holders hoping to buy back cheaper; I don’t know of any other share on the ASX that has such promise; if I sell now I will have to pay higher capital gains tax; and I am keen to remain part of this company’s future (yes, maybe I am becoming a Galaxian myself). But if I am wrong then my stop loss will protect most of my capital.
GXY Price at posting:
62.0¢ Sentiment: Hold Disclosure: Held
