Liberty Star Uranium & Metals Corp LBSR Possible Momentum Peak

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.