AMLM – American Lithium – Trading Chart Update
This past Wednesday, January 6, I wrote:
“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.”
Prior to yesterday morning’s opening [Jan.7] American Lithium Minerals issued yet another press release announcing positive preliminary Gravity Survey results from their AF Claims on the Alkali Flats of Montezuma Valley in Nevada. As you can see by the chart, the result of these two positive releases has seen the stock price experience a two day breakout on the upside.
The stock has rocketed from a low of $0.49 on Monday to a high and closing price of $1.28 today, for a daily gain of $0.33. When the stock bottomed out at $0.49 three days ago, it did so on increased volume of 914,000 shares. Yesterday’s volume of 1.5 million shares and today’s volume of 1.37 million shares indicate that the stock has garnered the increased interest of market participants.
As I mentioned above, if the stock can close above $0.95 at week’s end, it bodes well for the next move upward to first resistance at the $1.50 to $1.60 level. As with any gain of these proportions [+150%] over a mere three trading sessions, some retracing of the move can be expected and should be viewed as another buying opportunity.
