Long on $LTUM!We had some very nice price action off this long monthly trend heading back to Jan of 2014 and off a fib level of $.07. Our trix turned green on December 1st for the first time since March of 2022, then not again until Dec of 2019.
Every time we get an engulfing monthly candle off this trend with a trix change to green, we typically go 500%-2500% to a top. I'm looking to snag like 40%-50% of this play. I do not feel comfortable holding penny stocks for very long as they can always go to 0 pretty quickly. But given this has a history since 2009 and Lithium is a HOT commodity right now, I feel comfortable inching into this play.
The daily chart seems to show a bullish pennant that we're breaking out of and we also have shifted momentum and a green trix again on the daily as well.
My first entry is $.1397, basically where we sit right now, then I have orders at $.1175, then $.0975 back to the lower monthly band. Target is $.22 for me. Which is right around the weekly coral.
My total risk is 3% of my whole account if my 2 lower orders fill. Right now, its about 1%.
Trade with caution and use risk management.
Let me know what you think.
