Daily 6 Apr
Positives
MACD has returned to the sig line
Histogram is still rising & almost back to zero
There are small divergences apparent on the MACD, Stoch & RSI
Negatives
Histogram is below zero
Stoch 14 is still trending down & is below the oversold line
Made a lower low during the week
Outlook
The daily again shows some small signs of a potential bottom but these are not apparent on the wkly. though.
The chart outlook is still quite bearish & uncertain.
Whether there is any real selling left is doubtful but the daily net sell vols were around 2mil per day.
Shorter’s were still active & having an influence.,
There are several bullish divergences visible which may lead to a relief rally or not.
Imo the pattern looks like a bearish continuation & the more likely scenario is a break down through the base of the current pattern which could, given the relentless manipulation, eventually see the sp testing the mid to low 20’s.
If a breakdown happens, next support is around 33 – 36. Below that just pick a number.
REMEMBER.
The fundamentals are unchanged. Construction of ponds onsite continues. Commissioning continues. Resource update soon. Funding solution with a Tier 1 Co is expected & more importantly they are producing BG Li by the ton not just in test tubes.
Weekly
Outlook.
Very negative looking atm
The momentum indicators are very overbought but can probably go lower.
Apart from the MACD being very wide there is little positive to see on the weekly at this time.
The big red candle & closing at the lows last week looks ominous & gives the impression that there is more downside to come.
We are currently at a tentative support around 39 – 40 having held that for 3 weeks, but whoever is in control this week may have other ideas.
If current support fails then 33 – 36 is the next likely area of support then potentially down into the mid 20’s.
Upside resistance is 43 – 47.
I think the best we can expect would be for a consolidation around the current support while waiting for the expected announcements.
Vol. last wk was lower than the prev wk & was net selling of -8,105,604.
Reported shorts up to Wed. last week were lower but still made up 19% of the net sell volume for the week.
All manipulation by the usual suspects.
Other than holding your nerve & toughing it out there is little to do but switch off or buy more while the opportunity presents.
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