2022 Charts, page-2577

Alright everyone - time for a classic Jezza chart from your boy - Jez

Classic textbook bounce off a rising Intra-channel support, however the last few days prior were an accelerated decline beyond the current short-term downtrending resistance line; so this bounce may be just to bring it back within the market-prescribed rate of declining price, or may be a genuine holding support who knows. I would say likelyhood perhaps 70-30% against our favour.



We've got a slight deterioration in the spot price of lithium due to recent COVID restrictions in China disrupting the productivity which requires BG lithium. (Remember last time this happened, it slightly retreated then went to make new highs in spot price once lockdowns were lifted; but we will see what happens).


We've also reached a crucial point in the wider international market (using America's SP500 as a proxy), where it's near a resistance level that may see a solid 15% drop if it get to support levels within its current channel (may or may not happen).


Got a few short term risks here, but long term smooth sailing, pina caladas and sunsets ahead. For those playing the short term game (not me) you could consider an exit with the breaking of the intra-channel support. For those seeking to buy, a bounce off the intra-channel support was nice to see - so could put in a bit, otherwise you may want to decide to see if that line holds in the next week if you like. If you're not happy with an entry at these levels you could wait to see if the price gets close to the linear or log-scale support at risk it may not get there (this way there is a stronger up-side, to down-side ratio potential in your favour, this is how its done folks).

Not to be considered financial advice (just teaching you how to read the charts).

Happy Tuesday everyone, another day closer to permits approvals and steady BG production as the ASX's 2nd lithium carbonate chemical producer.

- Your boy, Jez