Yahoo Finance Price Alert: Greatland Gold outperforms over three months
Shares in Greatland Gold (LON:GGP) have performed strongly against the market in recent weeks. On a 3-month relative price strength basis, the price is up by 65.4%. Its last close price was 13.5p.
This kind of outperformance can be driven by any number of factors, but there's no doubt that strong near term moves appeal to momentum traders in search of recoveries and breakouts. While market sentiment has generally been bullish in recent months, there are still big concerns about the earnings outlook for many companies in the months ahead.
The upside for Greatland Gold is that investor optimism is translating into positive price momentum, which is regarded as a leading predictor of future performance...
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Trading the trend
Research by some of the investment industry's most respected strategists shows that relative strength can be one of the most consistently useful pointers to growth.
Price momentum is heavily influenced by psychology, with investors under-reacting and subsequently over-reacting to company news, driving prices higher over time.
The catch is that investor sentiment is prone to wild swings, which makes momentum risky when used on its own. Combining it with other factors, like attractive valuation, high quality and low volatility, can help reduce that risk.
Overall, the upward trend in the share price of Greatland Gold over the past three months is a promising sign. But while the stock has been outperforming recently, relying on momentum in volatile markets can be hazardous.
Is it time to buy or sell?
Shares in Greatland Gold (LON:GGP) have outperformed the market over the past three months - but is that justified? Investors may be optimistic about the future, but economic uncertainty still dominates.
To get a better understanding, it's worth looking at whether the shares are now cheap or expensive, and whether analysts have now changed their forecasts. You can find that out with the company's Stock Report on Stockopedia.
