HI All. It has been a while since I last posted having been OS for 6 weeks. I got back 10 days ago and have been reading posts sporadically. Haven't wanted to engage due to the tone of the conversation recently.
Thought that I would throw my 2 cents into the charting ring and give you my interpretation at to where I see things.
Chart 1
The chart goes back to March 2020 (the bottom during COVID). I have only left the 200MA (daily) and the 200MA (weekly) on the chart for a reference. We have well and truly broken the 200MA (daily) - as expected given the failed ALB offer. As can be seen we are approaching he 200MA (weekly), given the ongoing weakness in the Li pricing. I have also highlighted the recent downward trend in price and the corresponding uptrend in the MACD and the RSI. Not sure if this divergence will continue to play out however.
You will see to horizontal dotted lines at 1.195 and 0.88. I suspect that price will draw to one (if not both of these in the short term (six months). If price breaks the 200MA (weekly) then (looking left) at the bars between between 1.195 and 0.88 would indicate that there would not be much resistance to hold price above 0.88.
I know that many will not like the above analysis (hence my reluctance to post) but that is the way that I see the chart and price action as it is playing out.
Chart 2
The second chart introduces the volume price indicator to show the visually the shelves of volume at certain prices over time. I have circled the lower volume below the 1.195 area. The BEOT will be hunting these and the higher volume areas to his whatever stop losses may reside there or the weak hands that will capitulate in frustration or fear.
You will also note the POC (red line). Given the shape of this portion of the graph (a fairly evenly shaped bell curve), one could imagine that price would have naturally gravitated to at least this level post a failed bid. Weakness in the Li price is not helping the Li sector now. I, for one, think there is more pain to come in the short term, which may be a good buying opportunity should have the stomach for it and you do the numbers re the opportunity cost for investing in something else (DYOR here, not financial advice in any way shape or form).
Will look at some other charts and economic data in the coming days or week.
Have a great evening.
IMO DYOR
(20min delay)