Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) is a small to mid-cap gold that is looking most attractive again here.
On its latest 4-month chart, we can see that, after an ugly break lower and sharp drop in mid-September, it has marked out a remarkably fine and clear Cup & Handle base. The strong rally during the first part of November to complete the right side of the Cup was caused by the company releasing good drilling results, and the subsequent drift lower on dwindling volume to form the Handle of the pattern was due to light selling in the absence of significant news.
Now, with volume having dropped to a low level, it looks ready to break out of the entire pattern, and of course, one possible catalyst would be the release of more good drilling results.
On the 1-year chart, we can see that Lion One has halved in price from its June peak, even after its gains from its October lows, and it looks like a good value here.
This chart also makes clear why the rally in November stopped where it did — the price had run into the zone of considerable resistance shown.
Having dropped back and regrouped, it is now better placed to make a serious attempt to overcome this resistance, especially as it has completed a clear base pattern.
The conclusion is that Lion One is looking most attractive here, so anyone holding should stay long, and this is a good point at which to make fresh purchases.
Lion One Metals' website.
Lion One Metals closed at CA$0.79, $0.58 on 8th December 8, 2022.
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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 are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
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Charts provided by the author.