In case y'all missed it, I think that was the break (up) for the day:
PLS, the purple line, has now tested the 78% fib twice so that should be entering a reversal up for a little bit and AKE is likely to follow it (or vice versa)
Next target for AKE is about 1336 and then 1346, should go up a bit after that then probably retrace to about 1340 and then climb again. Not sure wether there one or two days in it, but I have patterns for both up and down on AKE and PLS, but I think the fib set up on PLS is looking more up, so there might be a slight bias to the up patterns. I think AKE needs a green candle today and to break that red trend line as it looks to be on a cusp. The green upwards channel would be the thing that has to hold, which we look to be breaking in the chart. Above 1345 is where we need to be today for that line channel to be holding. You can see my range for today was 1311 to 1393, but US trading gave me 1288 to 1351, which is a bit bazaar because even with that range the US stocks are all in an upward trend, but that would put AKE in a downtrend, so a bit confusing right now, and that is I think reflected in the chart as it shows why there are diverging patterns.
My guess is the forward risk that is influencing the trades is the China lock-down situation and how that is going to project onto future demand, thus PLS is being more heavily penalized than AKE due to the differing exposures to China as the next step in the supply chain.
Both PLS and AKE are still following the same intraday inflections which suggests that whatever is influencing the broader market is being reflected in both stocks - thus suggesting significant algorithm impact - or a very large human community responding to the same information feeds at the same time in the same way right across the Li market, at least. The difference is that more often than not, PLS has responded more negatively and less positively than AKE over the last few weeks to an downward or upward inflection respectively. So the bias has been down for PLS and up for AKE, but PLS has now hit an important Fib retrace point - 78% and the odds, in a generally rising market are now strongly that PLS would rise for a bit, so on this basis we would expect a stronger reaction from AKE, if the existing pattern continues to hold. On the other hand, AKE has had a relatively light retrace, but it has come back to the bottom of its own rising channel.
All in all this is a good place to see a lift, for at least a few days in both stocks.
I wonder how this post will age.
