Liberty Star Uranium and Metals Corp in Possible 15 minute rising wedge

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. . .