Sorry I slept in.
Daily 17 Feb
Positives
Stoch 5 has moved up off the o/s line & has crossed above the sig line.
Stoch 14 has flattened off at the 50 line & has also crossed above the sig line while remaining in the bullish zone just above 50.
Negatives
Stoch 5 is in the bearish zone below 50.
MACD has crossed below the sig line & is trending down.
Histogram is below zero & trending down.
Outlook.
Support held around 70 – 71 last week after testing that level 4 times.
Volume was very low apart from Tue attempted selloff.
My daily models show upside alerts, so I expect to see the sp higher than the last close on the next bar but at this stage the Pros still have the upper hand & don’t appear ready to let the sp run just yet so
I think the sp will be under pressure in the s/t with the potential to dip back into the prev. 64 - 70 range.
We are at a s/t resistance point around 72.5 & that may be the top of a pennant pattern but so far there is no catalyst to push higher to the next level up around 75 – 77.
It looks more likely that support will continue to be tested.
Next support is down along the rising trend as shown & down around 67 – 70.
The next project update is probably not due until the following week allowing for the Pros to continue their work & providing some opportunities to traders.
Otherwise just sit tight.
Weekly
Positives
MACD is above the sig line & rising.
Negatives
MACD is very wide. Histogram is trending down.
Stoch 14 is in the overbought area & has just or is crossing under the sig line.
MACD is very wide.
There is still a bearish divergence showing on the RSI.
Outlook
The Wkly chart trend is still firm but looks like the consolidation will continue.
My weekly models show downside signals so in the s/t I expect to see another test of the wkly support around 68.5 – 70.
The weekly vol was significantly lower than the prev. few weeks & was net selling of 2,144,819.
Reported shorts to Thu. were lower at 1,008,044 & the aggregated short positions reported on Mon continued to rise & were 24,978,006.
The next operational update may provide the catalyst for the continued rerate but at this time there is little to do but wait or accumulate when the smart money provides that opportunity.
Some data I would like to see in the next update is.
How much BG Li has been produced since the end of Dec.
Is the pilot plant still being utilised for training & some production & if so, how much BG Li has been produced in there.
What is the status of the permits & is that being held up until the Fed govt has presented their “package of laws” to the governors of the provinces.
Those items & the lack of news may be a factor in the sp being held back.
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