GT Gold Corp (GTT.V) put in what I affectionately term "a disaster sell-signal" today:
The disaster sell-signal occurs when a stock breaks down through a key level of support on at least 3x average daily volume and closes in the lower price quadrant of that day's trading session. Today's action in GTT fits the bill and there is likely no hurry to try to buy this name after today's trading.
Novo Resources (NVO.V) also got sold pretty hard today, however, NVO caught a 10% bounce off of a key support level in the final minutes of trading:
Today's stretch in NVO was deep enough that it could potentially serve as the final down-draft of the correction which began on October 4th. Although today's buying in the final minutes is encouraging we will have to wait and see if price manages to stay above C$6.90 over the coming days. A daily close back above C$7.50 would offer strong evidence that the correction has indeed run its course.
The lithium space is white hot (no pun intended) and lithium explorer Wealth Minerals (WML.V) is up seven consecutive trading sessions while knocking on the door of fresh decade high levels:
WML is short term overbought, however, this overbought condition can be corrected through either time OR price. A breakout above C$2.10 should target C$2.50+, meanwhile the C$1.80 level is likely to offer strong support on pullbacks.
Disclosure: The author is long NVO shares at the time of writing and may buy or sell any of the stocks mentioned at any time without notice.
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