Liberty Star Uranium and Metals Corp today showed a very strong upward reaction right from the get go which is a bullish sign that LBSR wants to be accumulated and eventually trade much higher.  We predicted that LBSR would trade higher today and it has, so what now ?

The volume on today’s upward rally was quite lacking with conviction.  To a certain degree today’s rally was sort of an automatic rally after yesterday’s 14% drop.  The fact remains that LBSR is still trading now within a wide trading range of .07 as the high and .044 as the low.

We still think it is in consolidation mode given today’s light volume.  It may trickle higher a bit more but we feel that it will eventually come back down to test .044 at a minimum with a preferred bias towards a filling of the .038 gap.

Right now on the 15 minute penny stock price chart (it is right now 1 hour before the close today) it appears that the penny stock LBSR is trading higher into a rising wedge formation which has just now slightly been broken.  How this pattern looks by the close today remains to be seen but this rising wedge seems to support the theory of another trip down either later this week or early next week.

Not shown in the chart below is the 15 minute MACD histogram which seems to b confirming the bearish potential of this rising wedge formation as it is showing a bearish divergence between the two most recent peaks of the Histogram.

The penny stock charts never lie.  They always help to allow one to keep sanity in the crazy wild moves of the penny stock markets.

Rising wedges have targets that go back down to the start of the Rising wedge formation which in this case could be near .044.  But we think it will undercut that number to .038.  Still, prices between .038 and .044 seem like good accumulation points to us.

Despite our forecast that LBSR will remain in this near term trading range and still consolidate down somewhat, we will be the first to admit that LBSR will trade much higher than .07 if it somehow manages to thrust higher above .07 this week.  This is a very low probability scenario right now, but flexibility is always key.

So the correction continues in the penny stock LBSR building eventual cause for the next big move up.  You might have noticed that volume plays a key role in our interpretation of these penny stock charts.  Volume is the energy or force which moves markets and any individual penny stock.  When you see a big price move but very light volume relative to what has happened in the past, then you need to be skeptical about the move in relation to where it is trading within the overall pattern.

It can be confusing at times, but here at penny stocks penny stocks we try to map out the rough seas of penny stock land. . .

Liberty Star Uranium & Metals Corp today corrected as we had predicted from our previous analysis.  So far we have nailed the breakout from above the .03 range and identified the short term top at the .07 range.  These were clear signals shown from the candlestick patterns and other indicators we follow.

Today we saw about a 14% drop which is typical in penny stock land.  The key about today was that volume was relatively very light which is a very bullish sign.  We still think that the gap at .038 will eventually get filled and may serve as a spike low of final low to form this short term trading range.

The MACD histogram did a confirmed sell signal today and so a trading range and consolidation is to be expected now. 

Tomorrow we may shoot back up to try to take the highs out again but price should then once again fall back down (eventually) to test today’s low.  This process may take about a week or so.

The preferred scenario is for LBSR to fall again tomorrow to fill the .038 gap on a spike low and then rally by end of day in a dramatic reversal that sets the stage for a nice big price advance Thursday and Friday of this week.  We suspect however that tomorrow will be an up day that retraces some of today’s decline and then leads to another drop into the end of this week.

The analysis does get a little bit more complicated now because we are in a midst of a large trading range.  The swings will be less predictable.  There will be some buyers near the top who will want to get out if price makes another run up there.

So there are still interesting dynamics here in this penny stock.  And we still feel that it should be accumulated on a gap fill at .038 and as long as volume and price parameters meet our conditions of strength.

You will not see this level of depth on 99% of other penny stock sites.  Only penny stocks penny stocks dot come goes into this level of depth and detail into penny stock moves. . .

Here is a list of penny stocks today that had a 150% volume surge and their corresponding symbols.  This list of penny stocks is simply a look at what happened in the penny stock universe today and have not each been individually evaluated.

For our thoughts and charts of the latest key movers please visit the penny stocks penny stocks homepage.

TRANS GLOBAL GRP IN (Public, PINK:TGGI) is in a do or die scenario.  This sub penny stock has hit the lower limits of an up trend line on the semi log chart that absolutely must hold tomorrow otherwise TGGI will head to the recycle bin.

This is about as clear as it ever gets in penny stock land.  TGGI must hold .0006 level tomorrow otherwise it risks a break of this uptrend.  The good thing I can say about this sub penny stock chart right now is that price has so far held support and today’s drop was on relatively much lighter volume compared to weeks earlier.

Also notable on the chart is that the RSI (relative strength index) is just perched up on the midpoint 50 level.  This is bullish as long as we STAY above the 50 mid point level.  A break down in price tomorrow will send the RSI below 50 which will confirm the bearish signal.

Overall I have to say that the whole volume pattern is quite bullish looking. I have not seen any huge surges in volume on any of the down spikes in price.  This could mean we will hold tomorrow and rest of this week.  But I can only speculate.  Either we do or we don’t.  Don’t second guess it.  Just let the stock do the work of telling us.

The huge volume surge is what makes this sub penny stock interesting.  But it will need to start surging again along with holding .0006 to keep this uptrend moving.

When penny stocks die, they usually do it by breaking up trend line support and then volume dies as well.  It will be interesting to see how this one shakes out in the final analysis. . .

There is an opening gap in the LBSR price chart.  If we are correct that LBSR is about to do a downward retracement from recent highs, then it would not be out of the question for LBSR to at least do an intra day price move that fills the gap at .038.

We have placed some buy orders ourselves for more accumulation of LBSR at .039.  That level is also consistent with a move that would help to better define the recent uptrend level of the LBSR penny stock price chart.

See the penny stock chart below for more clarity.  The red horizontal dotted line represents the gap level and the two blue up trend lines represent possible uptrend ‘foot support’ if you will where price can find new strong bids again to continue this uptrend.

Here at penny stocks penny stocks we go into more depth and detail on penny stock charts than the top 100 penny stock websites combined.  Penny stock charts have some unique characteristics than other ‘regular’ stock price charts but the principle of technical and chart analysis remains the same.

A lot of times the three white soldiers candlestick pattern which is a very bullish signal is still usually retraced so price can catch its breath and build cause for a new move higher.  The same would be true if you see the three black crows candle stick pattern from a price top.  Usually there is a retracement back topside to help define the new move.

If we do get a gap fill at .038 then it is likely to be a very sudden event that happens only on an intra day basis at which point buyers are likely to come in heavily to support this penny stock . . .

Sometimes the difference between a great penny stock that performs like a champ and one that is lackluster and weak is only 1/2 of a penny.  This appears to be the case for STRATTON HOLDINGS right now.

It must hold the .0049 level otherwise the uptrend line of the recent large swing trading range is at risk of breaking.  Anything under .0049 and STRATTON HOLDINGS goes into the recycle bin.  But if somehow, some way STHG can hold here and move higher the rest of this week it may have some life left in it.

With penny stocks one has to be extremely picky and critical of how they behave.  This is no love affair here.  Either a penny stock behaves to your criteria or you kick it right out your front door until it gets its act together again.

The red dotted trendline is the one I am referring to in the chart above.  Today we touched it but admittedly on light volume.  The MACD histogram continues to have downward momentum and shows no signs as of yet of any kind of buy reversal signal. . .

I think Liberty Star Uranium & Metals Corp momentum is drying up a little bit today and we may be due for a short term pullback.  Remember, no penny stock every goes up in a straight line.  It has had a nice strong advance that has been quite persistent since the breakout over .03.  It was a clear sign of strength.

But today at least at mid day volume does not seem to be coming in as strong and the relative strength index on LBSR hit a peak of 87 today well into the powerzone.  The MACD histogram appears to be showing a slight slowing of momentum as well.

So it would seem there are some ingredients for today being a short term top.  We may trade flat to only slightly higher the next 2 days and then possibly drop down to .04 to .045 range as a short term thrust down which will probably be bought quickly.

If we are right about LBSR entering a short correction here then it will most likely be very short lived (at least the worst of it may be) because of the inherent strength of the longer term chart.

It would be particularly short term bearish if Liberty Star Uranium & Metals Corp closes at .06 today because it would create a dragonfly reversal doji candlestick on this penny stock.  Also, we previously mentioned the topping tails of the last few days which is an indication of some supply coming into the stock.

So it would definitely not be the end of the world to get a little pull back in LBSR.  If we are correct about it starting within the next couple of days then the retracement should offer a healthy chance for this penny stock to consolidate and build new cause.

There is an outside chance that the current consolidation is only a pause and could lead to a quick new move higher above .07, but for now that seems like an unlikely outcome.

It is very tough to look too far ahead but if we get a dip to .04 then it could set the stage for another horizontal type trading range that builds cause for an eventual breakout move to a new plateau above .07.  

If you ever begin to start trading penny stocks try to remember this one very important rule.  Penny stock quality is much more important than penny stocks quantity.

There are a million penny stock sites out there (probably more) and maybe most of them focus on quantity.  We can understand the desire to have a lot of quantity because it makes it seem like there is a lot to choose from.  Certainly people want to have a lot to choose from in the penny stock universe and this is not necessarily a bad thing.  But it is only those finely tuned minds that are able to filter out the quality penny stocks from the quantity that stand a better chance at this game.

To be honest there is not that much quality out there in penny stock land.  One really has to search long and hard to find it and also recognize the simple fact that there are probably only a small handful of true quality penny stock setups in any given year.  It may be more than a handful actually.  Maybe it is about 10 to 20 true quality penny stock setups.

In our view, this should probably be the most important task that any potential penny stock investor should embark on.  Making the definite decision to only focus on finding the absolute number 1 rated penny stock setups instead of just the hottest recent big mover that seems like its should go up.

I have been trading penny stocks for about 10 years now off and on and I can tell you with zero doubt that it is extremely difficult to trade penny stocks with a consistent winning record year after year.  I don’t mean to sound discouraging, but in my view it is a simple truth.

So the question is how can one build up better odds over time and consistently win in the penny stock sector year after year ?

To me, this is the most important question one must ponder if they are looking to participate in this sector.  The penny stock sector can offer potentially enormous rewards if a proper strategy is developed to win in this sector.

It is the desire and definite chief aim of this penny stock site to attempt to come up with a long term winning penny stock trading strategy.

We do not claim to know all the rules or secrets but we do feel we have a keen eye towards what makes for the best penny stock setups.

The average penny stock can provide to traders 20 to 100% gains on a daily, weekly or multi week basis.  It is very easy to forget the power of compound gains when trading penny stocks.

Did you know that if you were to compound a starting capital of $500 at a 50% rate that it would grow to $1,108,418.91 after just 19 trades?  But this assumes that after each trade you would re invest your entire proceeds into the next trade which would expose oneself to the highest possible risk with each trade.  This is not advised but I point this compounding example to show how even 30% to 50% returns achieved consistently enough times can lead to massive wealth building.

But the issue is how do you find the penny stocks that are going to return 30 to 50% on a consistent basis?  The answer is that it depends on the penny stock price chart.  Either the penny stock has all the ‘right stuff’ in the chart or it doesn’t. 

We feel very strongly here at penny stocks penny stocks dot com that when we see a superb number 1 rated penny stock chart setup, it jumps out at us boldly and really makes a statement.

A problem that occurs is partly the result of their being so many penny stocks and so many potential setups. It can be easy to get suckered into the less than perfect setups and then suffer bad draw down and losses.

But think about this for a moment… Imagine if there was a penny stock trading strategy that on an annual basis tries to only find the number 1 rated penny stock setups a few times a year. Perhaps those setups would return 30 to 100% returns.  And then imagine if you could consistently achieve these returns year after year.  It goes without saying that if done successfully, a large amount of compounding of capital could be achieved.

But it is perhaps more easily said than actually done.  The ability to identify and participate in only the strongest possible penny stock setups on an annual basis is quite a challenge.  It requires the ability to scan through hundreds or thousands of penny stocks and then having the foresight to only participate in those setups that are deemed number 1 rated.

Probably the hardest part of such a strategy is resisting the temptation to jump into less than near perfect penny stock setups…

Well you now have an idea about our frame of mind here at penny stock penny stocks dot come…

Now lets get to work…

The following list is the penny stock scan for today.  These penny stocks are automatically scanned and are not rated by us and have not been reviewed.  They are just meant as a scan of the penny stock universe so as to see what is moving in the penny stock sector at prices below .10 cents.

Volume Spike Scan of 150% or more combined with Price Advance:

MACD Bullish Cross:

2 Day Bullish Movers:

Have a great weekend.  By the way I just noticed out of this list that TAON looks quite interesting as yet again another penny  mining stock.  I will have to study the chart for a while and see how it looks, but my first glance at it made me think it might look quite good…