Gediminas Jasionis
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First Lithium Resources Inc. (CVE:MCI) (PINK:FLNTF) Sees Humongous Buying Pressure

by Gediminas Jasionis May 11, 2011
2 Comments
0mci_chart.pngFirst Lithium Resources Inc. (CVE:MCI) (PINK:FLNTF) spiked up significantly yesterday despite the lack of catalyst to drive the rally.

MCI share price gained 62.5% yesterday on a trading volume that topped 11 million and was nearly 14 times the average of 747 thousand. The stock passed an important resistance at 16 cents, which helped to accelerate the rally.

No news was out to trigger the rally, so it was most likely fueled by short squeezes, which later grew to take out resistance.

The last update to cause a similar price reaction was published on April 25, and stated they completed a drill program at Mollie River. The update had called out a noticeable stock price reaction back then, thus it might also be a second spike induced by the same news.

first_lithium_logo.jpgDespite the massive gains and clearly positive sentiment towards the end of the trading session, the share price is very likely to pull back soon. The last rally did the very same thing after two days of spiking up.

Currently, the support is at 16 cents, which previously served as resistance. Such rallies are also prone of morning panics - a rapid share price decline in the morning caused by profit taking and panic selling.

Comments (2)

1. Lispecial
May 12, 2011, 09:09AM

Quotes I think the fair market cap for First Lithium is about 35-40 Mil. c$.

2. alexander
May 12, 2011, 04:19AM

Quotes It`s not Mollie-River that drives MCI, it`s her Valleyview Lithium Properties
which covers over 1 Million Acres and that by a market cap just around 11 Mil. can.$. When you look to Lithium Expl. Group (LEXG), you will see a market cap about 110 Mil. and that py a Land package from under 100,000 acres.
Have a good day!

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