MGX Minerals Inc MGXMF

Contrarion Hype Stage Bubble #3 on Horizon

[HonestAbe]

This analysis is based solely on past charting and technical analysis and provides some insight on what could potentially occur in the near future. The conclusion might appear crazy but it revolves around a theory of past bubbles in this stock.

Bubble #1 occurred early 2015 from mere pennies of maybe 3c to 5c and peaked in late summer 2015 around 75c. This is 15x to 25x from the low depending on which price is used. Stock collapsed to 10c low and consolidated over a lengthy period of around 14 months or so.

Bubble #2 occurred late 2016 from 15c low to a peak of $2.70s in Q1 2017 in a very quick 3 to 4 month period. This is 18x from the 15c low. As we all know stock collapsed from $2.70 to 90c literally in just several days.

Now prior to bubble #2 during the 14 month consolidation, after hitting 10c low, it made one recovery rally to a 40c interim top. During late 2016 prices rose from 15c low and hesitated around this same 40c level before the price explosion upwards. Thus the interim top 40c also defines the launch phase prior to liftoff. The peak $2.70s is 6.75x launch phase price.

So far we are over 10 months in a prolonged consolidation from bubble #2 top. Considering ducks are aligned favourably, that is the EV revolution picks up steam and 2018 is hot for lithium and MGX gets identified by highly influential mainstream analysts as an "undiscovered" value lithium play, it is not unreasonable assumption to expect chart is setting up nicely for imminent bubble #3.

Potential bubble #3 script. If extrapolate from current consolidation low of 75c then 18x increase implies $13.50 bubble top by mid-2018. The recovery rally from the collapse to 90c after $2.70 peak hit an interim top of $1.70. This $1.70 will be the launch phase equivalent just prior to price explosion if bubble #3 scenario plays out. Using 6.75x the $1.70 price implies bubble target $11.50.

These possible prices of $11.50 or $13.50 are not ridiculous considering that is still a market cap just over $1 billion and even fathomable if MGX ends up signing few contracts that quickly total annualized recurring revenue of $50m to $100m including both water treatment fees plus saleable lithium and magnesium.

I am just frustrated by the blatant price suppression but that might he the catalyst for this third bubble outcome. Cheers and GL!