From 17 April 2018 to 6 June 2018, 5.89 million shorts were closed out (together with longs also starting) the SP was up from A$2.80 to A$3.44 (i.e. SP tended to rise by A$0.64 for every 5.89 million shorts closed)
Thus with more than 72.2 million shorts outstanding left to close on market, once the squeeze is fully complete, the SP would rise by A$7.84
So with a closing price before the squeeze at A$2.77, the after-squeeze price would end closer to A$10.61
We should assume shorts will only close down to around 7% outstanding i.e. 43.73 million shorts will be bought back on market, thus SP would rise A$4.75 to reach A$7.52
This would be all using charting and past patterns
"Current analyst consensus estimates for Galaxy Resources is AUD 4.15 or 17% upside. I would assume the analysts have not yet factored in the POSCO deal, as the deal has not yet finalized. Once it finalizes, I would expect a significant target increase closer to AUD 5.00" https://seekingalpha.com/article/41...e-vida-project-de-risked-huge-cash-sale-posco
"Catalysts
Q3 2018 - POSCO deal due to complete. (TICK)
Q3 2018 - The FMC lithium IPO should give a boost to Galaxy's SDV project valuation being located nearby.
2018 - Mt Cattlin resource upgrade. James Bay Feasibility Study.
2018/19 - Announcements to commence construction of Sal De Vida.
2020/21 - Sal De Vida production to begin. "
So all in all, I'll see everyone at A$5.00 for starters
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GXY Price at posting:
$2.77 Sentiment: Buy Disclosure: Held
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