I don’t want to give away the commodity in the title because in the Lithium patch, ALB and SQM are probably among the first stocks people would think of if the word “Lithium” is mentioned.
As I watch Tesla fly away to the over-valuated heavens I also watch a global move toward electric vehicles likely to continue unabated in the coming years. So maybe the picks and shovels of the sector are the way to play it rather than headline end users like Tesla or traditional car companies where the progressiveness of EV is watered down.
Copper is suspiciously firm today as are industrial metals and commodities in general. May be nothing, may be something. But pardon me if I am not quaking about deflation at the moment. Also worth mentioning, the Copper/Gold ratio is trying to go bullish. That is not nothing. It’s potentially an inflationary something out into 2021 if the signal holds up.
Preamble aside, in addition to slight base metals exposure (TECK) and Agri (WEAT & NTR) related exposure, this is another dip into the Resources patch.
ALB & SQM are currently pulling back a bit and have support as noted at and above the weekly chart’s EMA 25. I am using the weeklies instead of the noisier dailies to show this simple objective… to hold support and in SQM’s case a break to a new recovery high. As they stand now these charts are in the process of changing trends from down to up. Just an FYI idea for you Lithium heads out there.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the technical parameters are already noted. These updates are meant as a starting point for your further research if interested. I will not personally buy every item highlighted and will sometimes sell (ref. Trade Log) any item that I do buy below target (assuming I’ve not stopped out or sold for some other reason) as I often do. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.
