GGP Stock Price Analysis: Consolidation Set For Huge Breakout?
- GGP stock has been bouncing in between a range since last September.
- There has not been even a single attempt by the stock to break out of this zone on either side.
- Such a long consolidation usually means a big move in the future but the stock still doesn’t look very strong.
GGP or Greatland Gold PLC is a precious and base metals extraction company based out of London. The company was founded back in 2006 and has been operating in the UK and Australia since then. The company’s financials have been weak with a constant loss on the balance sheets. The stock has given a net 33% negative return in the past year, which has significantly troubled investors.
Technical Analysis for the GGP Stock
The GGP stock has been highly range bound since September of last year, moving constantly between £6.60 and £9.20. Every time the stock touches its high, a sharp selling-off is seen which indicates a strong number of buyers in the market.
The stock has not broken its resistance even once in the past 10 months and it has been moving sideways ever since.
The £6.60 level appears to be strong support as the stock has respected it each time. One should expect more sideways movement till November as there is not much scope for a big move in the stock till then. The company is supposed to release its earnings in November and only after that report is out can a big move be expected on either side.
The hourly chart shows another range for the stock between £6.60 and £7.52. A soft resistance is seen at around £7.90 and only after the stock breaks this level, one should expect a further upward move.
Current support lies at £6.60 and the stock has not breached it even once in a year. If it manages to fall below this level in the upcoming weeks, a huge downside move can be expected with £6 and £5.5 as the target.
If we look closely at the candles, a weird formation can be noticed, primarily due to fewer volumes in the stock which is a major reason for the stock’s range-bound movement.
If higher volumes are bought in the future, upward targets can be around £7.52, followed by £8.
The stock has been trading sideways for a long time and one can expect a big move in November, when the company is set to release its earnings. Till then, a similar sideways movement for the stock can be expected. The chances of the stock slumping below the £6.60 level are low since it has been above these levels since 2020.
A surge in volumes and healthy confirmation is what one must wait for before taking any position.
Major technical levels
Major support zones- £6.60 followed by £6.0.
Major resistance zones- £7.52 followed by £8.