Evening guys
Had a few trades out of this recently but its certainly starting to look like a big soak here at 1.8-2 cents, the Upside here seems to be pretty big when considering the ground CDT has. So now im holding long ready for the next leg up, bit of a slow mover but there's a good chance this breaks 2-2.2 cents in the coming days/weeks
The last 2 attempts at breaking 2 cents resistance were sold off very quickly, heres why I think this time is different:
On the first attempt the SP had run from 0.4cents to 2 cents in 4 months from April to August 2020, thats a 400% profit for holders in such a short space of time there was bound to be profit taking at that technical resistance level. On the second Attempt earlier this year the SP had run 100% from 0.9-2 cents in 1 to 2 months, also Sophisticated investors would've been well aware the company needed to raise funds in the near future, so taking profits would've been the obvious move and new buyers being aware of this too didn't want to buy much up at those levels hence the fast drop.
This time around we are on the third attempt the SP is up 50% from the raise price and the new addition of lithium to the company's PF makes this now a much more lucrative opportunity for investors, on the first 2 attempts at breaking resistance the sell off was sharp and fast...infact you could almost call them failed attempts at breakout from 1.7 cents as they didn't remain above there for any length of time, this time around we have institutional investors taking part in a recent raise at 1.2 cents which was heavily oversubscribed there is too much demand for the stock at 1.6 cents to see this drop and investors are looking for a bigger pay day than 20-30%... the flippers at 1.6-1.7 have been absorbed already, now the SP has spent a little over 2 weeks sitting above 1.7 cents and has succesfully backtested that zone....what were seeing now is a gradual soak between 1.8-2 cents as buyers invite sellers down from above clearing the way for the breakout, this could go on for a few more days weeks or it could be done sooner, although the volume wasn't there today the candle did show a slight uptick that could be signaling the beginning of an attempt on 2-2.1 cents
if not then well keep soaking keep accumulating, doesnt seem to be any opportunity left here for traders unless your going for a pip in at 1.8 out 1.9 rinse and repeat but eventually youll be left with your pants down if you dont hold a core when this goes for a run. Too much upside potential here with Lithium Valuations showing no signs of retreating.
Were now getting to the Apex of the ascending wedge...breakout seems inevitable.
Weekly also about to bust out above the 200 week EMA
(20min delay)
