In looking to add to my Long Position in Neo Lithium Corp $NLC.V / $NTTHF I have approached this TA from a bearish perspective over the short term. As detailed on the chart, You can see price make relatively weaker advances: The first move up in early June was stopped at +3SD channel, the next at +2SD channel (note volume). Price always travels back to the mean and $NLC as a miner is not above choppy action in SP. To be clear, I don't see massive downside risk here, but rather some selling pressure channel trading back to the $2.70-$2.75 range.
On top of Linear Regression Analysis, the 21 ema is currently acting as support and the 9 ema (I applied it to see where it was but can only keep 3 indicators) is acting as resistance. I think the clearest conclusion to draw currently is that NLC is trying to figure out which way it is going to go.
One could make the argument that if the market holds here for the most part and small caps participate in a further advancement that $NLC could maintain the mean and advance back up through the positive side of the channel. $NLC is not without near-term catalysts in this Quarter like an off-take agreement and/or financing to finish capitalizing the 3Q Project + release of its DFS. I am taking the approach that these catalysts are a month + away and the above TA in the short-term may come to fruition. I have placed a LB for shares at $2.71.
In sharing this post I think its worth noting that at the Annual and Special Meeting held on June 25th the company set forth a vote to allow the board the discretion at a future date to consider a consolidation of the common shares of the company on a 1 for 2 ratio to list on a Senior US Exchange. Not a guarantee this R/S will occur, but its a possibility and something to be mindful of. When pre-revenue companies R/S, their SP can crater. Granted 1 for 2 is as good as you can get when it comes to R/Ss. I am keeping some cash for a buy further down the road to cover off this risk that may exist and take advantage of a downturn. I have emailed Mr. Vicens the company's CFO and contact person on SEDAR kindly asking for an update on the AGM vote as its been some time since the meeting. I will share any update given on ye olde twitter.
As always Please follow your own trading rules and do DD first.
Cheers,
Luke
On top of Linear Regression Analysis, the 21 ema is currently acting as support and the 9 ema (I applied it to see where it was but can only keep 3 indicators) is acting as resistance. I think the clearest conclusion to draw currently is that NLC is trying to figure out which way it is going to go.
One could make the argument that if the market holds here for the most part and small caps participate in a further advancement that $NLC could maintain the mean and advance back up through the positive side of the channel. $NLC is not without near-term catalysts in this Quarter like an off-take agreement and/or financing to finish capitalizing the 3Q Project + release of its DFS. I am taking the approach that these catalysts are a month + away and the above TA in the short-term may come to fruition. I have placed a LB for shares at $2.71.
In sharing this post I think its worth noting that at the Annual and Special Meeting held on June 25th the company set forth a vote to allow the board the discretion at a future date to consider a consolidation of the common shares of the company on a 1 for 2 ratio to list on a Senior US Exchange. Not a guarantee this R/S will occur, but its a possibility and something to be mindful of. When pre-revenue companies R/S, their SP can crater. Granted 1 for 2 is as good as you can get when it comes to R/Ss. I am keeping some cash for a buy further down the road to cover off this risk that may exist and take advantage of a downturn. I have emailed Mr. Vicens the company's CFO and contact person on SEDAR kindly asking for an update on the AGM vote as its been some time since the meeting. I will share any update given on ye olde twitter.
As always Please follow your own trading rules and do DD first.
Cheers,
Luke