Kodal Minerals share price has moved sideways in the past few months as demand for lithium continues rising. KOD stock was trading at 0.2630p, where it has been in the past few days. It has crashed by more than 25% from its highest point this year. Also, it has risen by more than 25% from its lowest point this year.
Is KOD a good buy?
Kodal Minerals is a small exploration and development company that focuses on West Africa. It has exploration operations in Mali and Nigeria and a market cap of more than 40 million pounds.
Kodal Mining is in early stages of its development, meaning that it is not making a lot of money today. Instead, it is spending millions of dollars developing its projects at Bougouni in Mali and several gold projects at Fatous, Slam, Dabakala, Nielle, and Nangalasso. It hopes that it will start producing these metals in the near term.
Buyers of Kodal Minerals stock hope that it will become a leading player in the lithium industry. Lithium is used in the manufacture of batteries, glass and ceramics, medical, lubricants, and air treatment among other industries. Analysts expect that lithium demand will rise to over 450k tonnes in the coming years. This could see it lead to a market deficit of 10k tonnes per year.
Therefore, Kodal Minerals investors believe that the company will continue doing well in the future when it starts production and selling its gold and lithium.
Kodal Minerals share price forecast
The daily chart shows that the KOD share price has been in a tight range in the past few days. A closer look at the chart shows that it is along the ascending channel shown in black. It has moved below the 25-day and 50-day moving averages. The stock’s Stochastic Oscillator has moved to the oversold level.
Therefore, there is a likelihood that the stock will continue falling due to the double-top pattern at 0.3205p. If this happens, the next key support level to watch will be at 0.2200p. A move above the resistance level at 0.2800p will invalidate the bearish view.
