Technicals | Dec 22 2020
This story features GALAXY RESOURCES LIMITED. For more info SHARE ANALYSIS: GXY
By Michael Gable
The share market remains resilient despite a rise in COVID-19 cases in Sydney. Stocks that can be viewed as part of the "re-open trade" have understandably fallen in the short-term, but we may be seeing some sort of support start to step in here at nearby levels. Once the dust settles, of course, there will be buying opportunities in the fallen names. There is no denying that with a backdrop of vaccines and government stimulus, the economy will rebound very strongly in 2021. The stocks that will benefit most from that will of course be the ones that are the buying opportunities in the short term.
Further to that, as we have mentioned previously, resources will be a very strong performer in 2021. Apart from the big names we have mentioned before such as BHP, FMG, RIO, AWC, etc, this week we have a chart Galaxy Resources ((GXY)).
Whilst some of the other lithium stocks have recently rallied, GXY appears to be still consolidating against the rally from November. This is healthy as it takes some heat out of the share price and prepares it for another rally. At the moment, we need to wait for the upside break and preferably see a close above $2.20 before it looks like a buy. That should then lead to a rally possibly up towards resistance near $3.00.
Fairmont Equities is a share advisory firm assisting Private Clients with the professional management of their share portfolio. We are based in the Sydney CBD but provide services to private clients across Australia. We believe that the concepts of fundamental analysis and technical analysis of stocks are not mutually exclusive. Regardless of whether you are a trader or long term investor, combining both methods is crucial to success. As a result, the unique analysis of Fairmont Equities is featured regularly in the media such as Sky News Business, CNBC, The Australian Financial Review, and the ASX newsletter. Contact us for a free trial of our research and information on our portfolio management services.
Michael is RG146 Accredited and holds the following formal qualifications:
• Bachelor of Engineering, Hons. (University of Sydney)
• Bachelor of Commerce (University of Sydney)
• Diploma of Mortgage Lending (Finsia)
• Diploma of Financial Services [Financial Planning] (Finsia)
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2
Fairmont Equities Australia (ACN 615 592 802) is a holder of an Australian Financial Services License (No. 494022). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.
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For more info SHARE ANALYSIS: GXY - GALAXY RESOURCES LIMITED