Hot sector, breakout chart, and a strong buy rating
Published: Mon, 03/13/17
![]() SMS alerts can make the difference between a profitable trade and a missed opportunity. Text “alert” to 97000 to receive our instant, reliable and free SMS alerts. Hello fellow investors / traders, The lithium sector is super hot right now, and we've got just the trade to take advantage.
Our last lithium trade idea was ENRT a few months ago, when it was trading between $0.02-0.03, just before it made an epic breakout to $0.10 for a 250%+ gain. Members who have been with us for a while will know that name well. But that trade is over. Now we turn to another small cap lithium play with very similar characteristics. U.S. Lithium Corp (LITH) is the name I am focusing on tomorrow, and you should too. The chart speaks for itself. LITH is very nice trader with excellent average daily volume that made a nice run from around $0.03 to $0.08 back in December / January. It then consolidated between $0.03-0.05 for a couple of months before making another move higher in late Feb. Today it sits just above $0.05. The chart shows LITH is steadily climbing higher. We think it could re-test its recent highs of $0.08, some 33% short term upside. A closer look at its longer term chart shows the 52 week highs of $0.15. A move back to these levels could yield close to 200% gains. So, as I mentioned, that chart speaks for itself. There is plenty of potential here. And our favorite trading website BarChart.com once again agrees with our analysis, rating LITH a strong buy on its short, medium and long term technical indicators. About LITH... LITH is an exploration and development company focused in North America on lithium and related resources for the rapidly growing energy storage industry. The Company looks to capitalize on opportunities within the lithium sector including providing lithium to the ever expanding next generation battery market. Lithium demand is projected to triple by the year 2025 according to a recent report by Goldman Sachs and for many analysts is considered the new gasoline of the future. As the demand for lithium expands, U.S. Lithium Corp intends to be an integral part of this next booming industry. LITH's current focus is in the Basin and Range province of Nevada where the only producing lithium brine mine in North America, Albemarle’s Silver Peak Project, is located. Elon, their first project, is located in Clayton Valley and is in close proximity to Silver Peak and several other active explorers and developers. As for Lithium, Tesla’s new battery gigafactory will need 15,000 tons of lithium carbonate a year just to get started. Grid storage and the powerwall will be additive from there. The powerwall sector alone could quadruple to $6 billion just by 2020. The company also now has strong cobalt interests. Experts have started to talk about 2017 as a break out year for cobalt prices as prices have more than doubled in the last 9 months and increased 35% in the last month alone. Along with lithium demand, which is expected to more than double from 2012 to 2017, and triple by 2025. Major Acquisition... Recently LITH announced it entered an agreement to acquire 100% of the Gochagar Lake Nickel-Copper-Cobalt project claims from Diamond Hunter Ltd. This is a major acquisition that consists of four claims covering 3,759 hectares that aligns with the Company’s strategy to find, acquire and develop mineral deposits that are key to the growing energy storage market, particularly electric vehicles. Cobalt and nickel, along with lithium, are all critical components in the rapidly developing rechargeable battery market. In Summary... Just like our past 250%+ lithium winner, we think LITH has everything going for it right now. The chart is bullish, trades super well, is very liquid, and has a history of making impressive gains. And of course BarChart.com shows LITH as a strong buy. The company operates in Wall Street's hottest growth sector - lithium. In addition, LITH has recently announced a major acquisition that could propel them to further rapid growth, and be a catalyst for continued short term upside. Get LITH on your screen now and be ready for the trading day ahead. SmallCapMomo.com --------------------------------------------------------------------------------------------------------
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