Critical Support Level for LKE
Updated
Lake Resources presents a promising opportunity with low risk and high potential for rewards. At present, the stock appears to be consolidating around the 60 1/2 cents range, potentially indicating a bottoming out of prices. However, we should also note that the downtrend line, as depicted by the chart's line, is currently descending into the price action.
Confirmation of a bullish trend will occur when we see a break above this descending line. It is noteworthy that there are several similarities between the charts of Lake Resources and Core Lithium. We recommend setting a stop loss just below the 60 cent mark for this trade, as it appears to be a key level of support and resistance for the stock.
Confirmation of a bullish trend will occur when we see a break above this descending line. It is noteworthy that there are several similarities between the charts of Lake Resources and Core Lithium. We recommend setting a stop loss just below the 60 cent mark for this trade, as it appears to be a key level of support and resistance for the stock.
Note
A stop loss would have had you out of this trade to look for the next setup. You can see the double bottom @.41c led to an impending rally back to the support line (now resistance level) @.63c. Not a good time to enter here without news or a market rally from here. Look for the next setup.
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