The purpose of this brief update is to bring Noram Lithium Corp. (NRM:TSX.V) to your attention again as it continues to look attractive here, and even more so than when we looked at it under a month ago on the 12th of June, as it is at a slightly lower price and on strong support which looks it is going to hold, with other technical indications continuing to suggest that it should soon start a major bullmarket.
In the original article on it, we thought it likely that, having reacted back to the vicinity of its rising 50-day moving average, support in this area would hold and turn higher again. It didn’t, and it has instead reacted back a little further to strong support near its rising 50-day moving average.
Otherwise, the picture remains pretty much the same, and in fact, it is more positive as upside volume continues to greatly outweigh downside volume, the Accumulation line, as a result, remains strong relative to price, and now the MACD indicator is close to breaking above its moving average from a slightly oversold position.
The latest 6-month chart shows the positive setup, and it now looks like the price wanted to drop back to form the Right Shoulder of the Head-and-Shoulders bottom shown at about the same level, and this it has now done. Given the positive volume indications, it is reasonable to expect the stock to advance from here, and clearly, if it does, it means that we are now at a very good entry point.
At first sight, the long-term chart is not especially encouraging as it appears to show Noram stuck in a large trading range, but if you refer back to the 6-year chart in the original article on the stock, you will see that this large trading range forms the "Handle" of a giant Cup & Handle base, which the volume pattern demonstrates is valid.
This is important because this pattern could and should birth a major bullmarket that will lead to big gains in this stock.
Noram Lithium's website.
Noram Lithium Corp. closed at CA$0.63, $0.466 on July 7, 2023.
Posted on CliveMaund.com at 5.00 pm EDT on July 8, 2023.
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