Here is the chart for LAC.TO
The left hand side of the cup formed after the spike up around $1 in May of 2015, with the drop and rise forming first the base of the cup and then the right hand side. After getting up around $1.00 again this April the PPS has slid all the way back to in around 75 cents as I write this.
This pull back I believe will prove to be the handle of the cup and handle pattern. If the pattern plays out as I am expecting I think we will see a breakout similar to what happened in late March when the PPS pulled back down in and around 45 cents before running up to $1 in April. I also consider it very possible that LAC could trade as low as 65 cents if this pattern plays out.
Do note that I have a long position in LAC.TO and so my opinion is not without bias. There is something called ''confirmation bias'' where someone loses perspective because of a preconceived idea or opinion. Also note that my opinion can change, and I may sell some or all of my shares if my opinion changes from bullish to bearish.
The most likely reason that my bullish opinion could change on Lithium Americas is if I were to find them paying promotional outfits with volumes going to 20+ million on a daily basis.
Comments are always welcomed, all I ask is that rules of common courtesy and respect be followed.
DISCLAIMER
This is strictly an opinion piece, and my opinion could very well turn out to be wrong. This blog post is intended strictly for informational and entertainment purposes and should not be used as a basis for any investment decisions. Avoidthebag.com is not a registered broker or investment adviser. Investing in stocks or options involves significant risks. For investment advice you should seek the input of a professional investment adviser.
For those reading, both of you....I added today at .75, I still think a pull back to .65 is possible but I wanted to increase my position and didn't want to chase if this 75 cent area is the new base.
ReplyDeleteI think there's only one of us here , hello ?
ReplyDeleteThanks for reading.
ReplyDeleteJust found this via SA. Been following you there for a while Joe. I book marked this site. Currently long NEM & LAC. Also looking into cobalt plays but being much more selective as I am already really heavy on mining in general (long SAM, MUX).
ReplyDeleteThanks for posting Jason....SA was okay, but their instablogging platform was too limiting, couldn't embed youtube videos, and if I made an obvious spelling or other error the updates wouldn't show right away.
ReplyDeleteFeel free to email me or to share your ideas via the comments any time you want to chime in.