LBSR Liberty Star Uranium & Metals Corp Uranium Penny Stock

I was looking through my penny stock scans today and Liberty Star Uranium & Metals Corp came up.  I was shocked when I looked at the chart of this penny stock because of the beautiful advance it made from a long base.  Needless to say I am disappointed to have missed that huge from from .003 to .03.  That is like a regular stock moving from 3 to 30 dollars!  A very nice move.

But now this uranium penny stock has consolidated in a sideways triangle and may be getting ready to advance again.  Today it moved nicely but I suspect that it is not entirely ready for prime time yet.

The larger structure of this uranium penny stock is indeed quite attractive.  Despite missing the move from .003 to .03, there may be a lot more to come.

It appears that a large part of the reason for the move in this stock was a jump higher in the price of uranium.  Remember a few years ago the price of uranium shot higher from 8 to $160 per pound of uranium.  It was one of the most unbelievable commodity advances the world has ever seen.

I used to have a price chart of the spot uranium price and will look into plotting it again with indicators so that I can get an idea of what may unfold with the uranium price.  It would be nice to see another ‘uranium mania’ of sorts to help this stock move along.

Anyway the nice thing about Liberty Star Uranium and Metals Corp is the longer term chart since late 1998.  The chart shows a long base followed by the recent massive rise on massive volume.  That is a very good sign in terms of the overall structure of the chart.

It could be argued that this uranium penny stock has formed a massive cup and handle pattern with the handle almost completed.  This could mean that we are headed for .05 plus in the months ahead, perhaps even .10.

It looks like key longer term resistance that needs to be overcome is .028.  Full price bars above this level would be a good sign that LBSR is getting ready for prime time again.

I do not think it is quite ready yet however.  It needs some more work around the current range, perhaps a somewhat sideways consolidation and then an eventual breakout later.

I think I have to give LBSR a penny stock rating of 1 on the penny stocks penny stocks dot come rating system because it has robust volume, a very nice large pattern and a clean price structure.

If the uranium price rise turns into a mania again then the sky is the limit for LBSR.  I will try to get the spot uranium prices into my charting program again so that I can determine what kind of bull market we have with the current uranium price.  It has been a long time since the price of uranium did that moon shot to 160 dollars a pound.

The supply demand relationship for uranium may be one of the strongest in the entire commodity sector and can lead to astounding gains.  The world is hungry for energy and most alternative energy will not be enough to compensate for world energy demands.  And if oil becomes more scarce then it would seem uranium is the next best thing to keep the lights on.

I am somewhat astounded that I have in only the last few days already given two stocks a 1 rating on the penny stocks penny stocks rating system.  Most stocks I cover here will likely not get this rating because of the rarity of great penny stock setups.