Liberty Star Uranium & Metals Corp Weekly Penny Stock Chart

The long term weekly price chart of Liberty Star Uranium & Metals Corp LBSR looks very constructive and should probably be studied as the blue print for what to look for in terms of a sustainable penny stock trend.

The weekly penny stock chart of LBSR shows that since 10/10/2008 there exists a long basing formation that is not quite flat but close enough.  This long range represents a transfer in ownership from bearish to bullish that takes place over a long time frame.  The flatter the base, the more bullish the new potential bull run.

The base is close to 2 years long and should provide enough energy for a sustained move higher.  In the weeks of May 2009, LBSR attempted to get a rally going but it could not overcome the force of selling pressure and then fell back into trading into the base.

But now during the last 5 weeks LBSR has again attempted to break out through this level and was successful during the last two days on high volume.  This represents a break out from this long trading range and a transfer from an accumulation/ basing phase to a new bull market.

The new bull market advance should be able to advance for at least 6 months given that we have a 2 year base.  Certainly the advance could go on longer than that but of course we will need more data and price candlesticks to see how things develop over time.

Most people do not trade off of the weekly charts but the weekly penny stock charts have the definite ability to provide calm and perspective in the face of wild day to day swings and emotionalism in the trading space.

Perhaps the main point to be made about the LBSR weekly penny stock chart above is that there is a very large tradable void that exists between .03 cents and .85 cents.

A tradable void is basically like a big air pocket of price movement where there is not that much major resistance for a stock to stumble on.  This is exactly what LBSR has between .03 to .85.  Many stocks have long messy trading ranges that go back YEARS and can interfere with a price advance or make it a lot slower.

The fact that LBSR has this large tradable void is very constructive indeed.  While it certainly does not guarantee or indicate that LBSR will zoom to .85 cents, it at least tells us that there will be fewer obstacles to moving higher than most other penny stocks.

I would be completely remiss if I did not mention the volume that is showing in this weekly penny stock chart.  Clearly the recent advance is accompanied by very robust volume that is supporting the advance.  That is exactly what one wants to see in any new uptrend.  It serves to confirm the uptrend and show that bulls are in control.

Many of the big penny stock runs that I have seen in the past have originated from a similar pattern that is shown in the chart above.  The best ones show the flattest base and the longest base.  The longer the base, the higher in space any penny stock can potentially move…