My view on Galaxy at the moment is that it is looking the best...

My view on Galaxy at the moment is that it is looking the best it has from a technical perspective, since it recorded its high in around August of Last year.

A number of posters seem to think that GXY is being capped and accumulated, and i have to agree. The share price has been Kept in a perfect down trend since the high was hit.

The downtrend seems to be on borrowed time as there are some nice buy signals at the moment.

Here is a 7 month daily chart:




- This chart Highlights the descending triangle/wedge pattern that Galaxy has been stuck in for the last few months.

having previously tested the down trending daily resistance line on 4 seperate occasions, GXY seems to have decisively broken out on Friday on the back of the highest volume day for 5 months.

- In addition to the Breakout of the triangle, Gxy looks to have made a higher swing bottom putting an end to the pattern of lower highs and lower lows.

- The low of 97 cents looks to be in place having been hit on the 5th of February, this resulted in a reversal back into the daily support line.


Heres an 18 month weekly chart



- Last weeks close of 125.5 is the highest weekly closing price for Galaxy for 7 weeks. This suggests that the dowwnward momentum has been broken and further gains are now likely.

The chart also shows a breakout of the weekly resistance line after having supported in the weekly support zone.

The weekly stochastics have turned back up for a very oversold position and now are indicating that the momentum is there for the stock to stage a multi week rally.


Finally here is a 3 year monthly chart.



- I like looking at monthly charts as they really eliminate the noise of short term fluctuations.

- Even though it seems like Galaxy has ben performing extremely poorly, this chart puts the performance into perspective.

Galaxy Hit a low in March 09 of 26.5 cents the stock then rallied for basically 7 consecutive months to a high of 2.40, not that far off a 10 bagger in 7 months!.

It has now been consolidating that massive increase for the last 6 months, in these 6 months it retraced 2 months of its previous gains. In the larger scheme of things the pullback has been technically very normal.
The stock has tested the 61.8% fib level and a monthly support zone and now looks to be ready to continue its run up.


I think that Galaxy currently presents a good investment opportunity as the trend looks to become positive again. The stock has been falling in the face of fundamentally positive announcements (ore reserve increases, Commencement of mining at Mt Cattlin, Off Take agreement with Mitsubishi)

Both Technically and fundamentally Galaxy is looking very good and should lead to some nice gains for holders in the near future.

Good Luck!