Often I display charts with a few words in the Daily Market Blog. But I don’t want to forget that NFTRH+ is about more than macro market updates. Sometimes I want to more formally display trade/investment ideas for your consideration. Below are two such ideas. One US based (North Carolina), and the other a global diversification (Chile) candidate.
Both are fairly diverse Materials companies, with a focus on Lithium. Both have broken out of falling wedges, and appear fairly early in those breakouts. This update provides some technical perspective for those who may be interested in these companies, fundamentally.
US based ALB (daily chart) declined in a sharp wedge to a support area. It broke the wedge, shot up toward the 50 day moving average, and is consolidating. Technical resistance does not come into play until the convergence of the rising 200 day average and visual resistance in the 155 (+/-) area.
Chile based SQM (daily) has also broken a wedge to the upside and is dealing with the convergence of the SMA 50 and SMA 200. Resistance is not far overhead in the 78 area. That does not mean it will hold below resistance, but there it is. First thing is it needs to take out the moving averages and get some volume going.
As a side note, ALB has already reported earnings, while SQM is upcoming on August 18th. If I decide to add one of these, I’d be inclined to go with ALB for that reason along the deeper corrective wedge from which it broke out and clearer support from which the breakout came.
On both of the above we can’t rule out a test of the lows before resistance objectives are targeted. But my hunch is it will be the other way around. i.e. more upside and then later, perhaps in September, a potential pullback. That could come along with broad markets taking a pullback.
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.
