This article follows up from an earlier article I wrote about Lithium stocks back in May 2018. Since that time there has been a decent pullback with Lithium and Lithium stocks but it might be worth watching to see if this downtrend is coming to an end. There have been bullish-reversal signals on a few Lithium related charts which I describe and discuss in this article. Lithium came up in discussion at our local ATAA meeting and, hence, this update.
LIT weekly: The weekly chart of the Lithium ETF, LIT, shows a recent breakout from a bullish-reversal descending wedge. Components of this ETF can found through the following link.
LIT daily: any bullish continuation here would bring the confluence zone of $35 into focus as this is previous S/R and is near the 61.8% fib level:
ASX Lithium stocks: This recent article noted top 5 Aussie Lithium stocks and can be found through this link. The stocks mentioned were ORE, MIN, PLS, KDR and GXY. I have included charts of these plus a couple of others; AJM and AGY.
ORE weekly: This is my preferred chart of the lot given the descending wedge set up; these are my favouite patterns to trade! There is also a Double Bottom look to this chart. Note the breakout from the bullish reversal descending wedge though. The target would be the confluence zone of $5 as this is previous S/R and is near the weekly 50% fib level:
MIN weekly: holding above $13 S/R. Not of huge appeal to me at the moment:
PLS weekly: This has closed the week with a three candle pattern of a bullish reversal Morning Star. Any hold above $0.30 would bring the confluence zone of $0.90 into focus as this is previous S/R and is near the weekly 61.8% fib level:
KDR weekly: I had previously mapped this breakout and the target has been reached. Maybe watch for any new close and hold above $2 for a push to the previous High?
GXY weekly: watch for any breakout from this descending wedge. The target would be the confluence zone of $3 as this is previous S/R and is near the weekly 61.8% fib level:
Other Lithium stocks
AJM weekly: watch for any breakout from this descending wedge. The target would be the confluence zone of $0.35 as this is previous S/R and is near the weekly 61.8% fib level:
AGY weekly: watch for any breakout from this descending wedge. The target would be the confluence zone of $0.35 as well as this is previous S/R and is near the weekly 61.8% fib level:
Summary:
Lithium and its related stocks have experienced a period of being out of favour and in charting decline. Trends do not last forever and this can be true of downtrends. There are some charting clues that the downtrend in Lithium could be reversing so watch for any further clues to develop in this space. As always, do your own due diligence, manage your risk and only trade with funds you can afford to lose.