Leonovus Inc. (LTV:TSX.V), which we fortunately bought again this morning soon after the open having earlier bought it at a very good price early in December, exploded higher to end the day with a 150% gain. The reason for the massive gain was the market realizing that Leonovus has the technology to stop hacks of government systems (and corporate systems) like the already notorious SolarWind hack of a few days back when there was a massive breach of government computer systems. The way this works is that Leonovus' Cloud data storage fragments data as if it was fruit in a blender with some key parts being localized strategically in ground based servers, so even if hackers break in they can't piece together the puzzle and so what they do siphon off is useless.
Here is the chart as of last night's close—there was not time to annotate this before today's open…
And here is the chart for today's close showing the enormous gain…
A big reason for today's huge gain was the news Leonovus Hyper-Secure Smart Data Management Provides Patented Data-Centric Protection for New Government Department.
Alright, so what now? Should we consider taking profits? I don't think so, because a rise of this magnitude and on this volume occasioned by a massive improvement in a company's fortunes that does not look set to be reversed normally leads to further gains. We could see several more big up days, although probably not this big, before it stops to consolidate and possibly react. We therefore stay long and keep it under close observation. A warning of a short-term top will be extremely heavy volume and a negative candle like a shooting star, but there will likely be sizeable further gains first.
Leonovus Inc. website.
Leonovus Inc., LTV.V, LVNSF on OTC, closed at C$1.19, $0.92 on 7th January 21.
Originally posted on CliveMaund.com at 5.40 pm EST on 7th January 2021.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.[NLINSERT]
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Charts provided by the author.
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