Hi all, price is sitting at a really interesting spot at the moment, right on the edge of a number of key levels. Here's some charts to have some fun with.
First here's a couple of charts I did last weekend to show where I got the dotted Rate Of Change (ROC) trend channels from that appear slightly curved on the daily chart. They are longer term straight line channels drawn on the log scale chart and transferred to the "normal" linear scale chart. The following two charts show the same channels- just so you can see where these bent channels come from on the zoomed in daily chart.
Here's the log scale chart:
Here's the same channels on the linear scale chart (yes they bend):
So price is sitting precariously at the intersection of several levels and indicators that many different traders will be looking at- it has a lot of eyes on this spot. I say precariously because just underneath is a clear volume void under $2.47- an area where there has not been a lot of trading either recently or in the past, until it gets to about $2.31 where a historical and recent volume shelf start to overlap so in theory should provide some decent support- especially at around $2.26 which is a clear horizontal key level. Price tends to move quickly through trading voids until it finds some liquidity below or turns around and scurries back to a previous high liquidity area. It's not the law, but something that happens time after time.
We can all see price has been grinding down during this retracement, and I'm hoping that when price turns around again that this process has already removed a lot of the loose available supply, so that it can move back up more freely without having to work too hard back through the $2.60-ish area and just above that is now resistance (in theory).
Most Lithium stocks I've had a look at are going through a similar retracement with a few exceptions. Many of the charts have pulled back in the same way as GXY with my dreaded broadening wedge beginning, and some with a more standard pennant or contracting wedge type of pattern. Here's an update to a comparison with Galaxy's main customers I posted a couple of weeks ago. Still not sure how useful this is but if there's anything to take away at the moment or since October perhaps Yahua is not the worst leading indicator for GXY price direction?
Good luck all.
