Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Shares of GSTechnologies Ltd (LON: GST) soared 80% despite the company not making any significant announcements today in what can best be described as a surge in buying pressure.
While we are not sure what triggered today’s, we know that massive price spikes are typically driven by heavy buying or selling, depending on the direction in which the surge occurs.
Therefore, today’s rally was driven by significant buying pressure, probably by an institution establishing a substantial position in GST.
GSTechnologies last major announcement was its full-year 2020 results released on July 12, where the company reported lower revenues of $3.41 million compared to 2019’s $4.55 million, a 25% drop.
The IT and telecoms infrastructure solutions provider highlighted its pivot into the blockchain arena following the appointment of Jack Bai and Shayne Tan as non-executive directors in January 2021 to lead the company’s blockchain efforts.
GSTechnologies also highlighted the recent signing of a collaboration agreement with Singapore’s Wise Mpay on 28 May 2021. The deal is part of efforts to develop new higher-growth synergistic business areas based on blockchain technology.
GST noted that its primary trading subsidiary, EMS Wiring Systems Pte Ltd (“EMS”), was also doing well, clarifying that it was committed to growing its EMS business despite its recent focus on blockchain technologies.
As short-term traders, we are always looking for one-sided moves as excellent trade setups, but it is usually not good to jump in once the move has happened. The best time to get into the trade was when the shares were trading at the support zone.
Following today’s rally, the best time to buy GST shares would be after a pullback, given the parabolic nature of today’s surge.
*This is not investment advice.
GSTechnologies share price.
GSTechnologies shares soared 80% to trade at 2.25p, rising from Friday’s closing price of 1.25p.
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