The decline from the February 2015 high has lost momentum over the past week and the price appears to have been in the process of building a small base. Daily and weekly momentum indicators have reached oversold territory, suggesting that the price is likely to bounce in the short term. The potential short term price target is $7.25. From current price levels a break above minor resistance of $7.25 is required to confirm that the correction is completed and trigger a rally to $7.90.
Overall, over the long term we don’t see a reversal of the down trend and at this point we only favour a counter trend rally. Short term buy.
GXL Price at posting:
$6.45 Sentiment: Hold Disclosure: Held
