"We mentioned last week some opportunities for short covering on several oversold stocks set to rebound to previous levels. One of these in particular, Galaxy Resources (GXY) has exhibited solid performance currently trading at a high of 0.76. This Lithium producer is building an impressive plant in China, where it plans to complete the entire Lithium ion battery production cycle and meet China?s growing demand. Lithium ion batteries are becoming the power source of choice for electric devises including cars and scooters ? with 27m of the latter to be sold in China next year ? replacing lead acid. Several of this type of producer are also cropping up in the US and we see this as a terrific opportunity to get into a growth industry with a great future outlook. Breaking levels around 0.85-0.90 could easily see this stock jump to over 1.00."
I don't know who trade ideas are but they have provided the above summary.
The strong Chinese backing here is a great positive and I am fully expecting Galaxy to continue to recover its significant SP losses over the coming weeks.
GXY Price at posting:
24.2¢ Sentiment: LT Buy Disclosure: Not Held
