American Lithium Corporation

American Lithium Corp. (NASDAQ: AMLI) is a Canada-based exploration and development stage company. The Company is engaged in the development of lithium projects throughout the Americas. The Company’s projects include Tonopah Claystone Claims (TLC) Lithium Project, Falchani Lithium Project, and Macusani Uranium Project.

Recent Financial and Business Updates:

• Mineral Resource Estimate at TLC: AMLI reported a significant increase in lithium resources at the TLC project. Measured Resources saw a 25% increase, while Indicated Resources increased by 129%.
• PEA Results at TLC: AMLI announced the findings of a robust Preliminary Economic Assessment (PEA) at TLC. The Base Case scenario showed an after-tax Net Present Value (NPV) of USD 3.26 billion with an after-tax Internal Rate of Return (IRR) of 27.5%.
• Macusani "Spin Out": AMLI disclosed its intention to separate its Macusani Uranium Project in Peru into an independent public company, aiming to provide additional benefits to its shareholders.
• Nasdaq Listing: AMLI commenced trading on the Nasdaq Capital Markets in January 2023, using the symbol AMLI.
• Royalty Buyback: AMLI announced the repurchase of the remaining 1% royalty at the TLC Lithium Project, resulting in the company's full ownership of the project.
• Test Work Results at TLC: AMLI confirmed positive results from test work at the TLC Lithium Project, showing a lithium carbonate precipitation purity of 99.4%, a lithium leach extraction of 97.7%, and an overall lithium recovery of 88.1%.
• Strategic Investment: AMLI arranged a strategic investment of C$7,160,000 in Surge Battery Metals, resulting in an approximate ownership of 9.9% of the company's common shares on an undiluted basis.
• Drill Permit Received in Peru: AMLI obtained the first of three drill permits required to conduct additional development and discovery drilling at the Falchani Lithium Project in Peru, marking a significant milestone for the company.
• DRA Global: AMLI appointed DRA Global as the lead engineer to expedite the completion of the pre-feasibility study for the Falchani project, including an update to the existing PEA, and to initiate a pre-feasibility study for TLC.
• NI 43-101 Technical Report: AMLI filed the PEA for the TLC Lithium Project, meeting the requirements of the National Instrument 43-101 standard.

Technical Observation (on the daily chart)

The price of AMLI stock has shown a consistent downward trend since making its 52-week high on January 26, 2023, with a correction of approximately 42.75%. Currently, the stock is near an important resistance of USD 2.30-USD 2.50, from where price has taken correction in the past. A breakout in upward direction from this range would likely initiate a new short-term trend in the up direction with targets of USD 3.00-USD 3.10. The RSI (14 period) momentum indicator is at a value of 57.11, with expectations of some consolidation or a short-term correction before the continuation of the upward trends. Moreover, the price is currently positioned above both the 21-day SMA and 50-day SMA trend-following indicators, which may act as dynamic short-term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to American Lithium Corp. (NASDAQ: AMLI) at the closing price of USD 2.20 as of June 20, 2023.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The Green colour line reflects the 21-period simple moving average (SMA) while the red line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The Black colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The Blue colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps in easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is June 20, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar 

Note: Trading decisions require a thorough analysis by individual. Technical reports in general chart out metrics that may be assessed by individuals before any stock evaluation. The above are illustrative analytical factors used for evaluating the stocks; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.

Disclaimer

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