Lithium Co. At a Nice Entry Point

Source: Clive Maund 07/21/2023

Technical Analyst Clive Maund takes a look at Noram Lithium Corp.’s 6-month chart to tell you where he believes the company is headed.

The purpose of this brief update is to bring Noram Lithium Corp. (NRM:TSX.V) to your attention again as it continues to look attractive here, and even more so than when we looked at it under a month ago on the 12th of June, as it is at a slightly lower price and on strong support which looks it is going to hold, with other technical indications continuing to suggest that it should soon start a major bullmarket.

In the original article on it, we thought it likely that, having reacted back to the vicinity of its rising 50-day moving average, support in this area would hold and turn higher again. It didn’t, and it has instead reacted back a little further to strong support near its rising 50-day moving average.

Otherwise, the picture remains pretty much the same, and in fact, it is more positive as upside volume continues to greatly outweigh downside volume, the Accumulation line, as a result, remains strong relative to price, and now the MACD indicator is close to breaking above its moving average from a slightly oversold position.

The latest 6-month chart shows the positive setup, and it now looks like the price wanted to drop back to form the Right Shoulder of the Head-and-Shoulders bottom shown at about the same level, and this it has now done. Given the positive volume indications, it is reasonable to expect the stock to advance from here, and clearly, if it does, it means that we are now at a very good entry point.

At first sight, the long-term chart is not especially encouraging as it appears to show Noram stuck in a large trading range, but if you refer back to the 6-year chart in the original article on the stock, you will see that this large trading range forms the “Handle” of a giant Cup & Handle base, which the volume pattern demonstrates is valid.

This is important because this pattern could and should birth a major bullmarket that will lead to big gains in this stock.

Noram Lithium’s website.

Noram Lithium Corp. closed at CA$0.63, $0.466 on July 7, 2023.

_{Posted on CliveMaund.com at 5.00 pm EDT on July 8, 2023.}

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1. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Noram Lithium Corp.
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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 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.

( Companies Mentioned: NRM:TSX.V,
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