Dajin Resources Corp.
Dajin Resources Corp. (TSX.V: DJI, OTC: DJIFF, XETRA – FRANCFURT: CTU1) is an energy metals company with brine based lithium exploration projects strategically located in both South and North America.
After the hype
The first bullish wave brought the DJIFF stock price from a low at $0.01 to a peak at $0.2352. Certainly in 2016 the price was hyped into the realm of inflated expectations for a company that was years ahead of commercial activity. The stock price then started a painful decline that lasted almost one and a half year but now appears to have bottomed out last week.
The long term trend is up
As shown on the yearly price chart (lower left quadrant) the long term is up above the rising trend line. A news release on Sept 7th related to lithium extraction technology appears to have been the catalyst for a >50% recovery from the recent bottom at $0.06 to yesterday’s daily closing price of $0.0929.
Investors should now be looking to buy the stock on weakness into the green band highlighted on the weekly price chart (top right quadrant). No precise buying price indication can be provided but any set back in the $0.85 area may be exploited. It is also possible for the price to gap up on a daily basis but this is least expected since the news is now behind us and therefore some reasonable consolidation can be expected instead.
This is no trading recommendation but a long term investment strategy to ride the Lithium, energy storage and electric vehicle exponential growth trend of the next two decades.
I am long DJIFF at an average price of $0.1009 as a long term investment strategy.