I have been consciously avoiding Lithium stocks due to global supply/demand gluts and an Li price utterly in the tank, fully erasing the bubble levels of 2021-2023. Much like Nickel, Palladium and Platinum, this “resource” appears to be perma-down or perma-basing.
I have not bought either of these and will be heading out of my office shortly. So I’d likely do nothing until after FOMC, if I do anything at all.
That baggage out of the way, LAC (daily chart) is my favored watch item and it is has a sneaky bottoming look to it. Today’s tick above the 200 day moving average makes it look nice. However, it is FOMC day and markets/stocks tend to get gamed (both ways) during FOMC week.
One way to think about it is that if you have fundamental reason to believe that the Li price is going to stabilize and the supply/demand picture is taking in the slack, this is a buy. The 50 day average could instruct a stop loss as needed per risk tolerance, below 2.80.
Then I looked at fellow Li watch list item, SLI (daily), and liked it as well, from a bottom feeder’s TA perspective. It has a break above the moving averages on volume (and on US political news regarding certain Li companies) and is bull flagging back down to the support at the SMA 50 area (1.30-1.38).
Another that is at a technical buying opportunity if you have fundamental reason to be involved. Stop to suit (tight to loose) below 1.30.
NFTRH+ trade setup ideas are presented for consideration and further research only, not as recommendations. I may or may not personally take positions in all or even most NFTRH+ ideas, as it would depend on my portfolio composition at any given time. “Stop loss” and target levels are usually noted and should be respected.
