Hi Folks
That was quick the canary snorted singing loudly today, definitely a bullish. The weighting dice thrown were an 11 which is included in the 8 and above category 15/36.
After todays very impressive drilling report increasing the Lithium reserves by 36% the canary bullish singing comes as no surprise. I have found that the dice are completely useless at predicting the timing of announcements and how significantly they will impact the market.
So over the course of just one week the PLS has come out with three very impressive announcements while I am being severely tortured by the lack of even a whisper of a long overdue and extremely important news from two of my heavily held companies, SMN & TLG. With those two stocks I think that my canaries are asleep.
With todays action I have replaced my small canary with a larger one . Singing bullishly above 5.26 ( which is not that far away) and bearishly under 4.58. I suspect that the only bearish signal possible is in the post dividend period. Dice 4 and under 6/36.
A quick look at the bullish scenario. At first glance I see an open daily up gap 5.02-5.07, however following three such strong announcements this could be a breakaway gap. Secondly there is a chance that 5.26 may offer resistance, but that could easily disappear tomorrow. If so then 5.43 becomes the next potential resistance level. 5.43 is interesting take a look at the big upward FIB on my chart.
You might be able to tell after todays 36% addition to our total resource I have turned bullish. That addition is bigger than a number of small Lith players and it looks like, with further drilling, that it may be added too. That drilling program did cost, 13 cents per tonne of addition resource,
So my bullish chart.
Notice I have drawn in an upward FIB A-wave from 3.36 to 5.03 (a), followed by downward B-wave retrace to 4.27 (b) ( half way between 38-50% fairly normal), so we are on our way to the C-wave upward extention to (c).
Notice that the C-wave 23% extention is on 5.46 ( coincidence?) and also the 38% extention is right on 5.66 which is the all time high ( another coincidence?).
In the past there have been several discussions about smaller cup&handle (C&H) patterns at lower levels, however two lips around 5.66 is the big daddy of C&H patterns.
We shall see?
Just the way I deal with the market so that I am not surprised by what plays out. As always DYOR
cheers Lies
(20min delay)