Interactive Investor

Will Galantas Gold shares continue to shine?

11th January 2022 07:36

Alistair Strang from Trends and Targets

Galantas shares are up 50% in a month. Independent analyst Alistair Strang studies the charts for clues that it can make this rally stick.

Northern Ireland gold producer Galantas Gold (LSE:GAL) appears to be enjoying the favour of the markets currently. The share price, cheerfully ignoring the current hiatus which seems to be infecting gold values, recently enjoyed a series of fairly positive sessions, making us wonder if something is brewing for the future.

Historically, Galantas' share price suffered from enhanced speculation for the future, but now the company is actually mining underground, boasting of a 2km underground development.

Hopefully, future price movements shall be based on production numbers, rather than ‘enhanced speculation’ among internet chatrooms.

A visit to the corporate website proved suitably impressive, a large mining area very reminiscent visually of operations shown on telly’s ‘Gold Rush’ documentary series, one of our guilty secrets every Friday evening on the Discovery Channel. Hopefully the mine doesn’t have extreme weather of Alaska and Canada.

Presently, trading around 34p, it appears the share need only exceed 35.5p to suggest some happy days ahead.

Share price movements since the 10:1 split last year generally prove quite reliable, and the situation now appears to be of movement above 35.5p being capable of triggering some strong movement to an initial 49p. Secondary, if exceeded, works out at a longer term 63p.

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

These are obviously fairly large jumps but appear to be made possible by the strength of historical declines, each time the share reached an unsustainable high. However, we would prefer the price to actually close a session above the Blue downtrend on the chart, just to make ongoing upward travel difficult to derail.

For panic to raise its ugly head, the share price currently would need to slump below the red line on the chart as the reversal consequences look pretty extreme.

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. 

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