(MENAFN- Investor Ideas)
In light of rising interest in electric vehicles, technical analyst Clive Maund reviews the 13-year, 38-month and 8-month charts to tell you his outlook on Global Battery Metals Ltd.
Whilst we know that EVs (Electric Vehicles) are being used as a 'trojan horse' to eliminate private motoring for the masses altogether, probably over the next ten years or so, with heavy subsidies being used initially to snare them into making the switch, when it comes to considering stocks to buy we have to be pragmatic, and this company, which is primarily a lithium explorer and developer, lithium being used in EV batteries, is certainly likely to be favored by powerful New World Order forces, and its stock looks poised to embark on a bull market soon, which is why we are interested in it. Global Battery Metals Ltd. (REZZF:OTCMKTS) was highlighted in an email sent out before the open yesterday and was up on the day.
On its 13-year arithmetic chart, we can see that, following a wild spike early in 2021, it went straight into a bear market that eventually ground down all the gains made by the spike as it gradually slumped back close to its lows and it now appears to be basing at strong support in this area.
Could it stay stuck down here for a long time as it did in the past?
It's possible, but it doesn't look likely because of the speed at which the accelerating transition is taking place in the world of motoring, a transition which, unknown to the hapless fools acquiring an EV, will eventually see them riding the bus or walking or cycling if they are allowed out at all, that is.
As a matter of curiosity, it is interesting to compare the 13-year arithmetic chart with the 13-year log chart shown below. The log chart has the effect of opening out the base pattern so that we can see what happened at very low levels. Back in 2014 - 2015, we can see that it dropped to the miserable price of a little over CA$0.1 and it almost hit that price again during the Covid crash pan selloff early in 2020.
A 38-month (3-year, 2-month) chart is interesting and useful as it enables us to see all the major moves in the stock over the past several years. First, the 'Covid crash' in the Spring of 2020, when the nurses in hospitals were practicing their dance routines, saw it plunge briefly to a very low level that approached the 2014 - 2015 lows.
After recovering from that, it had an enormous spike early in 2021, which I heard was due to some positive battery hysteria, but after this spike, it went into a long and grueling downtrend that eventually resulted in it losing all of the gains it made during the spike.
It hit bottom last July and then went on to build out a Double Bottom, the second low of which occurred in October and took the price a shade below the July low and we will now proceed to look at this base pattern and recent action in much more detail on an 8-month chart.
On the 8-month chart, we can clearly see the fine Double Bottom that has built out in the stock in recent months. It rose sharply out of the second low early in December to complete the pattern, and it now appears to be in the process of breaking out of it with the sideways pattern since the early December runup providing time for the moving averages to converge and for more stock to change from weaker to stronger hands.
Note the persistent strong upside volume since early December, which is a very positive sign, especially as it has driven the Accumulation line higher in a robust manner, and the way that it has continued to press higher so far this year suggests that the price will have little trouble in soon breaking above the line of resistance at the CA$0.15 level. Lastly, the MACD indicator shows that it is only a little overbought here, so it has plenty of immediate upside potential.
In conclusion, Global Battery Metals is rated an immediate Speculative Buy here and especially on any near-term minor dips, which could as it is close to resistance. The stock trades in adequate volumes on the US OTC market.
Global Battery Metals' website.
Global Battery Metals closed for trading at CA$0.14, $0.104 at 11. 00 am EST on January 11, 2023.
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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