Narration:
What we see is a steady but aggressive climb within Channel 1.
Suddenly, large parts of China went into quarantine (most significantly the geographical areas that process lithium into batteries). This meant that the spot price took a very minor retrace, and along with reports from major investment banks that lithium had peaked and labelled it as big fat "sell", we saw a lot of money temporarily withdraw from lithium stocks.
Consequently, AGY fell into "Channel 2" and seemingly "bottomed" at the .618 retrace mark which is a very significant threshold which basically says "okay ladies and gentlemen we had a big surge and money went in fast based on market information that the going was good, and then suddenly the going wasn't good based explanation in above paragraph" and now based on the .618 hitting it's like... okay, that wave came and went, now what information has changed, the chart wants time to reevaluate and see where it wants to go and is deciding what AGY is worth again -- is China coming back online and buying all the lithium again? (Yes)
- is lithium price going back up agin towards where it was before the China Lockdown (Yes)
- Is the price and sentiment of the overall lithium market picking up again into a continuation of the bull run (Yes)
Now the chart is revaluating this information and deciding where it wants to go. Shall it remain in Channel 2?, or will it go into Channel 1?, or will the big downward resistance line prevail (not likely).
In my opinion its the first 2 options.
Cheers!
AGY Price at posting:
39.5¢ Sentiment: Buy Disclosure: Held
