Orocobre is a global lithium chemicals supplier that recently merged with Galaxy Resources to create a business with a market cap greater than $5 billion.
“Lithium prices continue to rise, and analysts continue to upgrade their price targets for lithium stocks such as ORE,” Michael said.
“Despite the great run in the past 12 months, I still think there is further upside to the share price.
“ORE has been trading in a manner that suggests these big moves are sustainable for the time being.
“Looking at the chart, it now appears as though it was forming a bull flag in these past two months (shown with the diagonal blue lines).
“That’s a sign of a stock taking a breather from an uptrend.
“It often leads to another move higher.
“We can also now see that the move higher over the past several days was a bounce off the bottom of that flag. This is similar to what we saw in May – June.
“ORE should continue higher from here before hitting resistance near $10.
“A clear break above $10 would be the next buy signal,” Michael concluded.
Orocobre Limited (ORE)
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