Galaxy Resources Share Price Retracing after Strong Run Up (ASX:GXY)

By Lachlann Tierney, Tuesday, 11 August 2020

At time of writing, the share price of Galaxy Resources Ltd [ASX:GXY] is down 1.59%, to trade at $1.24 apiece. You can see the GXY share price spiked strongly starting in July then punched through resistance at around $1.10...

At time of writing, the share price of Galaxy Resources Ltd [ASX:GXY] is down 1.59%, to trade at $1.24 apiece.

You can see the GXY share price spiked strongly starting in July:

Source: tradingview.com

The GXY share price then punched through resistance at around $1.10.

This free report reveals three stocks that could surge on the back of renewed demand for lithium in 2020. Click here to get your copy now.

GXY share price tracking other ASX-listed lithium companies higher

It’s an emerging theme from the second half of the year.

The pandemic was thought to be putting a brake on the EV revolution, but just recently Germany announced increased EV subsidies as part of a green recovery plan.

A lot could hinge on what China does with its subsidy schemes for GXY, but if the long-term bottom is in, then the next few years promise to be exciting for GXY.

I previously discussed the waiting for Godot-like nature of investing in lithium, speculating that many lithium investors could be younger or at least have a longer investment horizon.

While there is no immediate news out at the moment, a strong run up could be seeing those who accumulated during the sideways trading in March and June take some profits off the table.

Outlook for the GXY share price

The Sal de Vida project advanced to the design phase in early July and GXY is targeting 2022 to see the first lithium carbonate from there.

In the short term the retracement in the GXY share price may continue.

As always, it’s a waiting game.

It may prove to be the European EV market that picks up first, and there are some interesting signals coming out of companies with exposure there.

For our updated lithium report, and three picks in this space, go here.

Regards,

Lachlann Tierney,
For Money Morning

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Lachlann Tierney

Lachlann ‘Lachy’ Tierney is passionate about uncovering hidden opportunities in the microcap sector. With four years of experience as a senior equities analyst at one of Australia’s leading microcap firms, he has built a reputation for rigorous research, deep-dive due diligence, and accessible investor communications. Over this time, he has vetted seed, pre-IPO and ASX-listed companies across sectors, conducted onsite visits, and built strong relationships across the microcap space. Lachy is nearing completion of a PhD in economics at RMIT University, where his research focuses on blockchain governance and voting systems. His work was housed within the Blockchain Innovation Hub at RMIT, a leading research centre for crypto-economics and blockchain research. He holds a Master’s degree from the London School of Economics and an Honours BA in Philosophy and Politics from the University of Melbourne. Born in New York and raised in California, Lachy grew up a few blocks from biotech giant Amgen and counts among his peers various characters in the overlapping worlds of venture capital, technology and crypto. When he’s not researching microcaps, he’s most likely sweating it out in a sauna or dunking himself in cold Tasmanian water.

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.