LBSR Trades Higher Again on Increased Volume

Liberty Star Uranium & Metals Corp once again traded higher today on increased volume.  The last three days have clearly been a confirmed breakout from the .03 resistance.  Today the stock did show some supply come in during the end of the day and this is evidenced by the medium sized topping tail in today’s price candlestick.

I mentioned yesterday about the ‘three white soldiers’ candlestick pattern and it with today’s bullish candlestick it appears to be a valid pattern.  So what now ?

I think we are getting close to buying climax for the short term.  I am not quite sure if today was it.  We did see the supply come into the stock today near end of day and usually what you will see is an attempt to rally back up to near today’s high which is .069 and then see if the stock has enough energy to power higher.  If it stalls near .069 then we have likely seen the short term top for now and will move into a consolidation pattern that may last several weeks.

The steadily rising volume has supported the recent advance and so clearly the trend is up.  The long term weekly charts also continue to look very good.  Sometimes I have seen penny stocks make a mid range close like we have today and then go higher one more day in a massive blow off power candlestick. It would probably be too speculative for me to predict that right now.

Instead I will just stick with the fact that some supply showed itself into LBSR stock today and the onus on the bulls is to take us higher straight out of the gate tomorrow otherwise we will likely start to consolidate again somewhat similar perhaps to the mid July period.