Taking a punt on this penny stock

TL;DR

Greatland Gold, a penny stock, presents potential opportunities in the commodities boom, with a promising chart pattern indicating a reversal and a target price of around 28 pence in the short term.

Transcript

hello it's john burford with chart of the week for monday the 17th of uh of may and i'm covering um a aim minnow a penny stock it's called greatland gold it is only been around a few years and it's in a joint venture with one of the major mining companies in australia and they're just working a prospect uh now in fact um and they obviously hope for... Read More

Key Insights

• 💥 Greatland Gold is poised to benefit from the commodities boom and its joint venture with a major mining company in Australia.
• 🍉 The chart analysis indicates a potential reversal and upward movement for Greatland Gold, with short-term and long-term targets identified.
• ❓ Caution is advised due to potential corrections in the commodities market and the uncertain situation with vaccines and pandemics.
• 👋 The FTSE may be entering a third wave down, contrary to expectations of economic recovery.

Questions & Answers

Q: What is the basis for the analysis suggesting a potential reversal in Greatland Gold?

The analysis is based on the Elliott Wave theory, which identifies patterns in market cycles. The chart indicates a clear five-wave pattern, followed by a correction. The new low is accompanied by a significant momentum divergence, indicating a high probability of a reversal.

Q: What are the short-term target prices for Greatland Gold?

The first target price is around 28 pence, followed by a challenge of the old high around 38 pence. If the analysis confirms that the stock is in a wave three, it could potentially reach even higher levels.

Q: Are there any warning signals for the commodities market and Greatland Gold?

The increased discussion about the commodity bull market can be seen as a warning signal, as it often precedes corrections. Additionally, other markets, such as grains, have already experienced setbacks. While these setbacks may present buying opportunities, caution should be exercised.

Q: What is the current outlook for the FTSE?

The current analysis suggests that the FTSE may be entering a third wave down, with a potential target price around the 55 area. This would contradict the bullish expectations of some analysts who predicted an economic recovery and a rally in the market.

Summary & Key Takeaways

• Greatland Gold, a small mining company in a joint venture in Australia, aims to generate substantial revenue from mineral production.

• The commodities market is experiencing a boom, with significant price surges in copper, iron ore, and lumber.

• The chart analysis indicates a wave pattern suggesting a reversal and potential upward movement for Greatland Gold, with a short-term target price of around 28 pence.