Liberty Star Uranium Corp Possibly Headed into a Blow Off Spike

I am trying to think of anything bearish about the liberty star uranium corp chart today and based on all the signals I usually look at there is nothing I can find of major impact that is bearish right now.  The MACD potential sell signal in place as of yesterday failed yet again today and price of LBSR closed higher again above the recent new high.  This is yet another bullish sign.

RSI continues to push higher and if we move higher again tomorrow it could lead to an enormous blow off topside spike maybe even up 100% from today’s close.  I say this because there is a resistance line along the recent RSI consolidation and if that is broken topside it could lead price into a spike higher.

There was some supply that came into LBSR in the form of a topping tail today but we did not close under the .11 level which would have been much more bearish.

Looking at the penny stock chart above you can see that the price of LBSR is trending higher at a steeper slope marked by the higher angled trendlines.  I still stand by my earlier point that when news finally does come out for LBSR then it will move into a consolidation and cause at least a month of sideways base building. 

I also stand by my earlier point that there is a new resistance zone at about 13.5 to 14 cents.  That should mark some type of consolidation point.

Current the market capitalization of LBSR is about 52 million dollars. A price of .20 cents would put the market cap near 90 million which is quite pricey for any penny stock.  Taking new long positions in LBSR right now is not recommended unless very quick on the trigger finger.  Upside here could be maybe 50% or slightly more but those gains have the potential to be erased very quickly.

I am not bearish on LBSR but just trying to be realistic given the extension of the recent move.  Again, I have to emphasize that when news comes out it will likely be sold and market a topping point.  Never think that when news comes out price is going to go up another 100%.  It just doesn’t work that way.  It all depends however on how big the run is before the news.  In some cases a penny stock can be trading sideways for many months and then a news item will send it sharply higher.  But given that LBSR is already well into this run, one has to assume that a sell on the news scenario will develop.