Leonovus Inc. (LTV:TSX.V), which we fortunately bought again this morning soon after the open having earlier bought it at a very good price early in December, exploded higher to end the day with a 150% gain. The reason for the massive gain was the market realizing that Leonovus has the technology to stop hacks of government systems (and corporate systems) like the already notorious SolarWind hack of a few days back when there was a massive breach of government computer systems. The way this works is that Leonovus' Cloud data storage fragments data as if it was fruit in a blender with some key parts being localized strategically in ground based servers, so even if hackers break in they can't piece together the puzzle and so what they do siphon off is useless.
Here is the chart as of last night's close—there was not time to annotate this before today's open…
And here is the chart for today's close showing the enormous gain…
A big reason for today's huge gain was the news Leonovus Hyper-Secure Smart Data Management Provides Patented Data-Centric Protection for New Government Department.
Alright, so what now? Should we consider taking profits? I don't think so, because a rise of this magnitude and on this volume occasioned by a massive improvement in a company's fortunes that does not look set to be reversed normally leads to further gains. We could see several more big up days, although probably not this big, before it stops to consolidate and possibly react. We therefore stay long and keep it under close observation. A warning of a short-term top will be extremely heavy volume and a negative candle like a shooting star, but there will likely be sizeable further gains first.
Leonovus Inc. website.
Leonovus Inc., LTV.V, LVNSF on OTC, closed at C$1.19, $0.92 on 7th January 21.
Originally posted on CliveMaund.com at 5.40 pm EST on 7th January 2021.
Clive Maund has been president of www.clivemaund.com, a successful resource sector website, since its inception in 2003. He has 30 years' experience in technical analysis and has worked for banks, commodity brokers and stockbrokers in the City of London. He holds a Diploma in Technical Analysis from the UK Society of Technical Analysts.
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Charts provided by the author.
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The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.
