Lake Resources N.L. (ASX:LKE) HEFFX Highlights

Lake Resources N.L. (ASX:LKE) HEFFX Highlights

Lake Resources N.L. (ASX:LKE) HEFFX Highlights

  • Lithium exploration company Lake Resources N.L. ( ASX:LKE) (“Lake” or “LKE”) announces that it has secured commitments to raise $1.665 million in an oversubscribed offer by way of the issue of 1,665,000 unsecured notes (Notes) to sophisticated and professional investors. The intention was to raise $1.5 million but due to demand, the offer was upsized.
  • Lake pleased with oversubscribed support for unsecured debt security of $1.66 million
  • Debt security avoids dilution of shareholders and allows drilling to advance
  • The funds received from the issue of the Notes will be used by Lake for exploration expenditure, including the costs of advancing drilling, and working capital.
  • A diamond drill rig will commence a maiden drilling programme in the coming days, with formal approval, over the Kachi Lithium Brine Project in Catamarca.
  • Lake Resources’ Managing Director Steve Promnitz, said: “Lake is grateful for the financial support to advance drilling over the Kachi Project to unlock further value. This allows time for the company to provide further results showing the scale and potential of the project.”

Lake Resources N.L. is engaged in mineral exploration. The Company’s principal activity is to maintain its equity interest in its Pakistan exploration interests. It explores for epithermal gold and porphyry copper-gold deposits in the Chagai Project located in western Balochistan, Pakistan. The Chagai Project area is situated in the Tethyan Magmatic Arc extending from Turkey through Iran into Pakistan. The Chagai Project area hosts a range of copper gold deposits, including Saindak copper-gold mine and Reko Diq copper-gold deposits. It focuses on tenements, including Koh-i-Sultan, Dasht-i-Gauran and Amalaf. It also has lithium brine projects in over three packages of tenement applications (over 90,000 hectares) around salt lakes in North West Argentina. Its lithium brine projects include Olaroz-Cauchari and Paso Projects in Jujuy province and Kachi project in Catamarca. The tenement applications comprise over 53 mining lease applications in Jujuy and Catamarca provinces, Argentina.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 0.08.

The projected upper bound is: 0.18.

The projected lower bound is: 0.14.

The projected closing price is: 0.16.

LAKE RES FPO closed up 0.020 at 0.160. Volume was 129% above average (neutral) and Bollinger Bands were 418% wider than normal.

Open       High        Low          Close      Volume
0.155       0.180       0.155        0.160      2,817,530

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period          50-period       200-period
Close:                       0.11                    0.07                 0.06
Volatility:                187                     167                   129
Volume:                   3,844,420        1,915,528        779,425

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

LAKE RES FPO gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
LAKE RES FPO is currently 188.2% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume into LKE.AX (mildly bullish). Our trend forecasting oscillators are currently bullish on LKE.AX and have had this outlook for the last 79 periods. Our momentum oscillator is currently indicating that LKE.AX is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 72.6891. This is not an overbought or oversold reading. The last signal was a buy 7 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 84.07. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 17 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 157.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 16 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

The following two tabs change content below.

John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

Latest posts by John Heffernan (see all)

You must be logged in to post comments :  
CONNECT WITH