Liberty Star Uranium and Metals Corp (LBSR)

[T3fl0n]

Just got email from SkyLabGlobal

Dear Valued Member,



Patience could pay off big time on LBSR as consolidation could lead to a MAJOR BREAKOUT when the bulls step back into the trading action. What do we mean?



LBSR has been a roller coaster of an alert, just yesterday we issued an alert on LBSR and quickly saw the stock run up from .019 to a high of .0299 today, representing a 57% gain trade opportunity for those that traded within this range. The stock closed up at .026 today which is an 8% gain intra-day, which isn't too bad.



What has us so excited is the way the chart and technical are setting up on this highly profitable alert, the chart is just itching for a move higher and the bulls want to bust loose and breakout!



LBSR has been consolidating at a healthy level and way since about Tuesday of this week, the stock has put in higher lows on each pullback or dip and the volume during this consolidation phase has been low, which is exactly what we want to see. The lower the volume during consolidation phases, the better - remember STHG had the same kind of price action, consolidation for a few days at .003 then it jumped to .009, repeat and it jumped to .025. LBSR is set up nicely from a charting perspective and can bust through recent highs with a breakout as it breaks above its pennant formation.



What is a pennant formation?



Investopedia defines it as:



What Does Pennant Mean?
A continuation pattern in technical analysis formed when there is a large movement in a stock, the flagpole, followed by a consolidation period with converging trend-lines, the pennant, followed by a breakout movement in the same direction as the initial large movement, the second half of the flagpole.

Pennant



As can be seen in the above picture, there is a large rise in the stock, followed by a converging consolidation period that resembles a pennant and a resulting continuation of the initial trend.



Investopedia Says

Investopedia explains Pennant
Pennants, which are similar to flags in terms of structure, have converging trendlines during their consolidation period and they last from one to three weeks. The volume at each period of the pennant is also important. The initial move must be met with large volume while the pennant should have weakening volume, followed by a large increase in volume during the breakout.



Source: http://www.investopedia.com/terms/p/pennant.asp



The accumulation here looks stellar looking at the 60 minute / 5 day chart we can see the accumulation line above 40! Meaning that buyers are "gobbling" or accumulating shares at these levels, which in turns means shares under .03 are scarce and once volume pours in the stock could shoot beyond .03 in a heartbeat. Also, taking a look at the MACD on the same chart and timeframe we can see signs of flatline or leveling out, a rise in price and the MACD will crossover, a bullish crossover will cause buyers to pour in and add fuel to the bullish rally.



Now that we have the technical side covered, let's take a look at the fundamental side of things which is quite interesting to say the least. Today, the trading community noticed that LBSRE was changed to LBSR, why? Well, the company at this point has filed the necessary paperwork and has gotten caught up on filings so they are no longer in the limited information category, they are now current and registered on the OTCQB. Now that the company is current, more and more investors may look at LBSR as a potential investment more so than before.



Members can take a look and verify this by clicking on the link below.



http://www.otcmarkets.com/stock/lbsr/quote



LBSR has both the technical and fundamental side working in its favor, these aspects mixed together could definitely cause a big BANG in the markets and the bulls here could stampede to new highs any day.



Remember as always, keep your emotional trading side in check and trade wisely.



Thank you for being a member of Skylab Global Investments.



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