Technical analyst Clive Maund examines Lion One Metals Ltd. to explain why he thinks it's a strong buy.
We bought back Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX) in mid-February, after avoiding a big drop, and even though we were right that it was undervalued – it was and still is – we were too early because it fell even further while he was in the process of defining a basic configuration.
On its latest 4-month chart, it is now clear what is happening. We purchased halfway down the left shoulder of what we can now see is a head and shoulders stocking that is nearing completion. Looking back, we can see that after the severe decline he suffered, he wanted to give the feeling time to recover, which is why he meandered, marking a dip in his head and shoulders.
At this point, it looks like he's working on completing the model's right shoulder, and once that's done, we can expect him to break out to the upside; Of course, the chances of this happening improve over time, with the sector recently embarking on a major bull market. Other bullish factors to watch are the clear resumption of bullish volume from the end of last month, which is finally starting to have a positive effect on the weak accumulation line, and the rapid improvement in momentum (MACD) , which tends rapidly upwards. Additionally, the current significant gap from the falling 200-day moving average is a measure of how oversold it is, creating potential for a pullback.
On the 10-year chart, we can see that the severe bear market since the 2020 peak has erased 80% of the stock's value. It's as if the company's gold reserves in Fiji have grown wings and flown away from the island, leaving Melanesia and heading to a Polynesian island like Easter Island – or perhaps s Is it simply investor amnesia?
Regardless, it's undervalued and undervalued here with further discovery potential, and Bob Moriarty of 321gold recently stated this as well, of course its revaluation potential is likely to be significantly increased by the continuation and acceleration of the major bull market in the commodities sector which HAS only just begun.
So we're staying for a long time and Lion One is considered a strong buy for all time periods.
Lion One Metals' website.
Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX) closed for trading at CA$0.49 and US$0.359 on April 30, 2024.
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- Clive Maund: I determined which companies would be included in this article based on my research and understanding of the industry.
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Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him at the time of writing. Mr. Maund's opinions are his own and do not constitute a recommendation or offer to buy or sell any security. Because trading and investing in any financial market may involve significant risk of loss, Mr. Maund recommends that you consult a qualified investment advisor, licensed by the appropriate regulatory bodies in your jurisdiction, and make your own due diligence and your own research when making any kind of transactions. of a transaction with financial consequences. Although qualified and experienced securities analyst, Clive Maund is not a registered securities advisor. Therefore, Mr. Maund's opinions on the market and stocks should not be construed solely as a recommendation or solicitation to buy and sell securities.