Greatland Gold shares: will the ‘Gold Rush' continue?

This gold miner has enjoyed a major surge this year. Our chartist wonders if it will prosper in 2021.

Greatland Gold (LSE:GGP) 

Those who watch Gold Rush on TV will doubtless remember last year, when one of those featured (Parker Schnabel) visited Australia to search for gold during the frozen season in North America. 

The fascinating series which ensued obviously discovered gold, along with the important detail the product was not discovered in powdered, ground-down form, but instead as nuggets of a size generally unavailable in the Canadian wilderness.

The documentary series completed with an admission by Parker that he intends to revisit Australia, next time geared up for proper mining.

Importantly, the bloke ‘Parker’ is in his early 20s, armed with a work ethic that ensures his team of miners exceed the results of other mining companies featured. 

It will be interesting to see if he continues to outperform in Australia.

This, neatly, brings us to Greatland Gold (LSE:GGP), a company already operating in several areas on the continent visited by Parker during 2019. 

Their share price has performed quite strongly during 2020 and now decorates the sky at its highest level ever.

We've no reason, visually, to expect the gains to cease. 

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The current picture is pretty amazing, suggesting price movement above 29.7p should continue a march towards an initial 31.2p with secondary, if exceeded, an impressive 35p.

Arithmetically, we start to experience problems at the 35p level unless the market discovers an excuse to start ‘gapping’ the share price up at the open. 

Should such a thing occur, it becomes very likely the prospect of a ceiling at 35p shall be exceeded.

If everything intends to go wrong for Greatland, the share needs to melt below red on the chart, currently around 19.5p. This will risk triggering a reversal cycle toward 12.4p.

For now, we are inclined towards enthusiasm with this share price and suspect gains shall continue.

Source: Trends and Targets      Past performance is not a guide to future performance

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or interactive investor will be responsible for any losses that may be incurred as a result of following a trading idea.