Liberty Star Uranium Metals Corp - tag category postings

I have recently been studying the gold, uranium and copper mining penny stock Liberty Star Uranium & Metals Corp again.  I had extensive coverage of LBSR many moons ago which you can view in the archives here.  At that time I had given LBSR a penny stocks penny stocks rating of 1, our highest rating.

Now I see that LBSR selling has dissipated and LBSR has formed a supportive range above .04.

I see now that LBSR will make a move back up to the old highs at .19 and now Liberty Star Uranium & Metals Corp is on high alert again as the trading pattern begins to emerge again.

This next leg up in price should be quite amazing because it would be an elliott wave 3 up which is usually the longest and strongest wave up in price.

The recent multi month decline showed a clear pattern of downward price losing its momentum and selling volume rapidly losing force.

I have some very long term charts (going back to the year 2000) of LBSR that more or less prove that we should be able to exceed .19 cents.  I will have those charts forthcoming in the days ahead.

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Liberty Star Uranium Metals Corp is trading today right on the near term up trendline that has defined the current swing trading range.  In my previous post on LBSR we indicated that LBSR was likely to trade higher from here back up to the top of the swing trading range.

So far that has not happened.  I am still open to LBSR trading back up to the top of the swing trading range, but now we are forced to recognize some caution because we are sitting right on the near term up trend line and today so far already briefly pierced under it.

This is a caution sign and a possible warning that we will not hold support here.  I have to say that I really want to see LBSR hold above .08 today otherwise there is more risk that the up trend will not hold.

There is still the possiblity that LBSR wants to do a retest of the .0633 high volume swing low before creating a final bottom, but still the most bullish scenario would have been holding ground here and trading higher back to the top of the swing trading range.

So in the penny stock chart above you can clearly see this defining line.  Ideally we move higher into the red squiggle I drew in.  Going into the area marked by the blue X will not be bullish at all.  In fact it may be the end of this entire uptrend.

The very high volume gap down right from the .20 cent area was less than ideal.  You never want to see a penny stock break down with such high volume right from the top like that.

LBSR could still turn its chart bullish by getting an end of day rally towards the close creating a strong reversal hammer.  We will have to see how it looks by close of trading today.  I am not ready to say this entire run is ‘over’ just yet, but I can say that right now with the current stance of the penny stock chart I am sitting on the fence and could tip over to either side in an eye blink. . .

Today the volume shrunk once again on the penny stock Liberty Star Uranium & Metals Corp.  Today does not show any indication of upside reversal.  As indicated in previous posts penny stocks penny stocks dot come expects LBSR to drift down for a retest after having previously filled its opening gap which we predicted earlier.

So today looks like a resting point and half way move pause before the rest of the half way move is completed in the days ahead.  The uptrend line looks better defined now and is likely a target area for support to come in.  It looks like .07 to .08 cents may be the upcoming low point.  It will be very important for this level to hold in the days ahead to keep the trading swing rang intact.

We could see as low as .062 again, but I would rather see Liberty Star Uranium & Metals Corp hold ground at .07 to .08 for a more bullish picture to develop.  Still, as long as the up trend line holds then LBSR should be on fertile ground for a new move higher after that.

We also indicated in previous posts that volatility would decline and that volume would also shrink which is exactly what is happening.

There is still the outside concern that the super high gap down very high volume down day that started this correction was too severe and may have permanently damaged the uptrend.  This is still unknown at this time.  KAT Exploration had a similar very severe high volume down day and that turned out to eventually destroy the uptrend.

But again, I don’t want to be too premature with LBSR. I still expect support at .07 to .08 to hold and then another move higher after that.  I need the price chart to fill itself out more before I can make a better determination whether the damage done on 9/2/2010 was enough to completely destroy the uptrend.  For now I do not believe it was, but it is just something to keep in mind as the trading range develops.

With penny stocks one can never take anything for granted.  The unpredictable is pretty much a given and one has to remain on guard for both bullish and bearish possibilities at any time.