As mentioned earlier in the year, I didn't think the bottom was in for lithium and there's certainly been some developments since then.
Overnight there's been a couple of key levels of support broken - by both ALB and LIT.
LIT has a clear volume void that could take it right back to the HVNs from the consolidation zone from 6mths ago. Positioning was very long from this zone so I'd expect any drop to $36-38 to be well supported (at least initially).
As for ALB, it also broke a key support overnight, however it did bounce directly off the biggest level of insto positioning on ALB for all time.
ST traders best scenario is that bounce holds and lithium starts its long climb back to higher levels from now.
*This scenario seems least likely.
LT holders will want LIT to dip through the VV then bounce off the HVNs.
This move would most likely see ALB dip and hopefully consolidate between $72-80.
The longer the consolidation here the better, especially if lithium can reverse from this zone.
*This sceneries seems quite likely, so perhaps a good opportunity to accumulate your lit stocks of choice (DYOR and decide for yourselves on that.)
The third scenario is that both LIT and ALB bust through these lower supports.
Considering the current trend this is an option you certainly cannot rule out.
*For the prudent and patient investors this may offer some incredible opportunities.
I have a number of lit stocks and key levels I believe correlate with the scenarios above but that's something you'll need to figure out for yourselves. Hopefully you've all left yourselves some cash to take advantage of any great opportunities that arise.
As always, remember to DYOR and GLTAH
*Apologies if pics are a little blurry as I'm out on iPad atm.
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(20min delay)