Liberty Star Uranium & Metals Corp Starts Correction as Predicted

Liberty Star Uranium & Metals Corp today corrected as we had predicted from our previous analysis.  So far we have nailed the breakout from above the .03 range and identified the short term top at the .07 range.  These were clear signals shown from the candlestick patterns and other indicators we follow.

Today we saw about a 14% drop which is typical in penny stock land.  The key about today was that volume was relatively very light which is a very bullish sign.  We still think that the gap at .038 will eventually get filled and may serve as a spike low of final low to form this short term trading range.

The MACD histogram did a confirmed sell signal today and so a trading range and consolidation is to be expected now. 

Tomorrow we may shoot back up to try to take the highs out again but price should then once again fall back down (eventually) to test today’s low.  This process may take about a week or so.

The preferred scenario is for LBSR to fall again tomorrow to fill the .038 gap on a spike low and then rally by end of day in a dramatic reversal that sets the stage for a nice big price advance Thursday and Friday of this week.  We suspect however that tomorrow will be an up day that retraces some of today’s decline and then leads to another drop into the end of this week.

The analysis does get a little bit more complicated now because we are in a midst of a large trading range.  The swings will be less predictable.  There will be some buyers near the top who will want to get out if price makes another run up there.

So there are still interesting dynamics here in this penny stock.  And we still feel that it should be accumulated on a gap fill at .038 and as long as volume and price parameters meet our conditions of strength.

You will not see this level of depth on 99% of other penny stock sites.  Only penny stocks penny stocks dot come goes into this level of depth and detail into penny stock moves. . .