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'Excellent Drilling Results Out Today' by Fiji Explorer
Contributed Opinion

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Technical Analyst Clive Maund dissects Lion One's stock chart and explains why he sees this to be a "great buy spot" for the company's stock.

Although Lion One Metals Ltd. (LIO:TSX.V; LOMLF:OTCQX; LLO:ASX; LY1:FSE) hasn’t done much since we nibbled at it back in September, aware that it could continue the basing process, its technical condition has certainly improved to the point that a new bull market is looking much more likely soon, and it just so happens that during the night the company came out with impressive drill results that are thought likely to get the stock moving today, especially as the pressure is coming off the sector after yesterday’s dramatic reversal in the broad stock market.

Whilst Lion One’s performance in recent months doesn’t look impressive on its 6-month chart, as it has basically continued to bump along sideways above an important support level, when we look more closely we can see technical evidence that a new bull market in the stock is brewing.

"This is a great buy spot for Lion One."

The first bullish point to note is the high volume rally in November that drove the price into the still falling 200-day moving average. This move is regarded as a preliminary breakout, and it was not surprising to see the price give back the gains due to the still unfavorable alignment of moving averages; however, the price and moving averages are now starting to bunch together in a manner that often leads to a breakout into a new bull market, and today’s news out of the company may well be the catalyst that triggers the breakout.

Another bullish point to note is that there was not much downside volume on the reaction back from the November high, which is a reason why the Accumulation line has held up well on the reaction, which also bodes well. Lastly, yesterday’s candle at the support was positive as it accompanied by a marked increase in upside volume that drove the Accumulation line higher despite the stock closing down on the day.

The 3-year chart shows the entirety of the correction from the August 2020 high and we can see how it had run its course by last June, since which time it has been bumping along sideways above the strong support level shown marking out what looks more and more like a base pattern that will lead to a new bull market. The increasingly tight bunching of price and moving averages is more evident on this chart and as mentioned above this is a potent setup that often leads to a breakout, with the recent lack of interest shown by the generally light volume another positive factor, since Smart Money tends to buy when the mob’s attention is elsewhere.

The conclusion is that this is a great buy spot for Lion One, as in addition to the excellent drilling results out today, there was a dramatic reversal in the broad stock market yesterday (maybe the Fed just created another trillion) and a parallel reversal in the precious metals sector with a bullish candle (dragonfly doji) appearing on the GDX chart. While the price is obviously likely to be positively affected by the news, it will probably take a while to filter through to many investors, some of whom may still be shuffling around in their carpet slippers with a bowl of Cheerios having stayed in bed with the wife. So with a bit of luck we can do some buying in the early trade before the price gets moving in earnest. Lion One is rated a strong buy here for all timeframes and not regarded as particularly speculative.

There is an interesting new article on Lion One in Streetwise Reports.

Lion One Metals website.

Lion One Metals Ltd, LIO.V, LOMLF on OTC, closed at C$1.01, $0.79 on 24th January 22.

Posted on at 9.05 am EST on 25th January 22.

Clive Maund has been president of, 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.



1) Clive Maund: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in the article are sponsors of Streetwise Reports: Lion One Metals. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this interview, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Lion One Metals, a company mentioned in this article.

Charts provided by the author. 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.

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