We did a good trade in Lithium South,
buying it back after an earlier successful trade at about C$0.36 late in January and
taking profits less than a month ago selling it at about C$0.60 on 19th March, as can be seen on its latest 4-month chart below. Part of the reason for taking profits where we did, apart from the obvious one that it had arrived at the top of an uptrend channel in a heavily overbought state, was the appearance of a bearish “harami” candlestick pattern that was compounded by it being simultaneously a “tweezers top” that included a bearish “hanging man” candle. In any event, it has done what we expected and reacted back hard.
The reason that we are looking at it again now is that, with the larger bullmarket in Lithium South remaining in force, it is believed to have dropped back to a very good “buy spot” for as we can see on the chart it has arrived back at a zone of support and at the lower rail of its major uptrend channel and is not far above its now rising 200-day moving average. In addition, its Accumulation line actually rose as the price reacted back which is clearly bullish and bodes well for renewed advance.
It is thus interesting that “a little bird” informed me that large Chinese companies have been doing site visits at the company’s major property in NW Argentina in the recent past, which of course raises the possibility that they are going to buy it out, and they surely have the clout to do it. In addition
the company has been exploring ways of significantly improving its lithium production and recovery which could significantly enhance the project’s value without altering the current production strategy. So the outlook is bright and not just because of the view across the salars in the high altiplano.
The time has therefore come to buy back Lithium South or to buy it for the first time if you haven’t before, and IT IS RATED AN IMMEDIATE STRONG BUY HERE.
Lithium South Development Corp
website
Lithium South Development Corp., LIS.V, LISMF on OTC, closed at C$0.46, $0.33 on 15th April 24.
Posted at 9.00 pm EDT on 15th April 24.