Regardless of how many electric vehicles spontaneously combust in the near future, the charts for positive lithium results yesterday from its second drill hole at Rincon West.suggest that it is headed higher, possibly much higher, perhaps for reasons of its own such as (this added later) the company coming out with
We’ll start by looking at the long-term 10-year chart to get a “big picture” perspective on what’s going on with the stock.
Argentina Lithium & Energy Corp is therefore rated an immediate speculative Buy here.
On this chart, we can see that, following a massive spike higher in 2016 and a lesser spike higher in 2017, it went into a bearmarket that did more than erase all of the prior gains — it became almost worthless, dropping to about CA$0.04 at the lows of the giant Cup & Handle base that is delineated on the chart.
A year ago, it spiked dramatically higher to complete the right side of the Cup before slumping back to slowly complete the Handle part of the pattern, which price / volumen action just over the past couple of weeks suggests that it may now have done.
The 15-month chart enables us to examine in much more detail the entire Handle part of the pattern that formed following the spike a year ago.
As we can see, this Handle has taken the form of an orderly downtrend, and in recent months, it has become clear that a base pattern has been forming at the support above its lower boundary that we will now proceed to look at in more detail on the 6-month chart.
The 6-month chart looks most encouraging. First off, we can see that a fine Double Bottom has formed from early August along a line of support at the 20-cent level.
Next, we can see the persistent heavy buying that started to kick in about two weeks ago that has driven the Accumulation line strongly higher.
Lastly, we can see that, after declining steeply for months, the 50-day moving average has started to turn up and thus converge with the falling 200-day, which of course, makes a rally more likely.
The advance late in September brought it up to a band of significant resistance in the CA$0.26 to CA$0.28 zone, where it was entitled to pause, which is what it has done, but the positive price/volume action of the past couple of weeks with largish white candles and strong upside volume suggest that “something is going on” with this stock and that it won’t be long before it succeeds in breaking above this resistance which should lead to a larger move.
Argentina Lithium & Energy Corp is therefore rated an immediate speculative Buy here. The stock trades in good volumes on the US OTC market, where there has been a big increase in upside volume in recent weeks.
Argentina Lithium & Energy Corp.'s website.
Argentina Lithium & Energy Corp. closed at CA$0.27, $0.189 on September 30, 2022.
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