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) spiked 32.1% higher despite not making any new announcements today. The rally could be attributed to the firm’s announcement last week that it had created a new subsidiary in the UK.
The company said that it had registered a new UK company known as GS Fintech Ltd as the first step towards establishing a business that will focus exclusively on blockchain products and services.
Investors cheered the move as evidenced by the stock’s rally following the news, which has persisted to date. We covered GSTechnologies stock in late January when its stock exploded higher without an explanation creating a parabolic rally.
The stock later fell just as we expected before the latest rally began following the UK entity's creation.
At the time, we noted that the company had been negatively affected by the coronavirus pandemic. Its EMS Wiring Systems had won a $1 million contract to install an integrated security system on a Singapore data centre in December 2020.
We advised traders who wanted to establish new positions in the company to wait for a pullback, which started on the next day and lasted for four days giving traders a buying opportunity between 0.50 and 0.60p.
GSTechnologies stock is currently trading at 1.1p representing a decent gain of 80-100% from the above entry points.
GSTechnologies share price.
GSTechnologies shares surged 32.18% to trade at 1.15p having rallied from Friday’s closing price of 0.87p.
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