AMLM – Company Update

Before this week’s trading began I wrote on January 3:

“Although American Lithium sold off further than I anticipated to the $0.60 level, I stand by my previous statement that this stock is tremendously over-sold. The continuing good volume indicates to me that the stock is under accumulation at these levels and both the RSI and MACD indicators [above and below the chart] are showing over-sold conditions.
I fully expect that in the very near future, perhaps this week, that we will see the stock trade up to fill the gap at $0.80 before trading back to the $1.05 to $1.20 level.”

Well, today’s trading activity was sparked by a press release announcing that American Lithium has entered into an agreement to acquire 5 new properties in Nevada. This positive release combined with the oversold conditions in the market resulted in a huge 1,522,041 share day as the stock gained back some of the recent losses and traded from a daily low of $0.51 to the high and closing price of the day at $0.85, up $0.34 for the session.

I expect that today’s activity will create more buying interest Wednesday from those traders that missed this bounce off the bottom. However positive today’s action, I do expect that before we see a move back to the $1.25 to $1.50 levels level that the stock must prove it has broken the recent 10 week downtrend. Confirmation of that would be a strong close by Friday at $0.92 to $0.95.