Trader_Johnni

LKE BEAR FLAG or BREAK & TEST

ASX:LKE   LAKE RESOURCES N.L.
Lake Resources NL (ASX:LKE; OTC:LLKKF) is a clean lithium developer utilising clean, direct extraction technology for the development of sustainable, high purity lithium from its flagship Kachi Project, as well as three other lithium brine projects in Argentina. The projects cover 200 sq km in a prime location within the Lithium Triangle, where 40% of the world’s lithium is produced at the lowest cost.

Recently spotlight was shon upon LKE with the speculation that NVX was going to supply Tesla with the technology required to create the "Million Mile Battery" LKE provides NVX with Clean Battery Grade Lithium to create the NMC622 LIB (lithium Ion Battery) test cells.

You can clearly see in the Chart that hype was real and then when it was proven Pure Speculation the market reaction. I wanted to let the dust settle before charting LKE next potential move. Below are 2 possibilities.

SHORT- Bear Flag & Gap Fill

Technicals:

- Bear Flag Pattern almost complete
- Stochastic almost overbought
- 20MA will be lost if we cross Uptrend Trendline
- Struggling to make a Higher High
- Bear Flag Target 1 marrying Previous Support
- Gap Open at 0.041-0.043
- Bear Flag Target 2 at previous lows

LONG - New ATH

Technicals:

- Break and Retest off Strong Support
- Stochastic has not turned
- Current Bullish Market Structure
- Ichimoku still Bullish
- RSI still trending above the 50 and not Overbought
- MAs currently still Bullish and price still currently above the 20MA

Interested to see what's next for the Clean Tech Lithium Producer

Personal Sentiment: Hold, Disclosure: Held

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