AKE Chart, page-5349

I can hear everywhere the bearish sentiment mooing like a cow being kicked repeatedly by my mate Whykickamoocow in Bali. Naturally, the news on lithium has been mostly negative. But if it is really that bad, why was AKE's volume yesterday not even reaching its average? Why is the volume diminishing for the last 4 days? Logically, if the foreseeable future of AKE (or lithium) is bad, then there should be more and more holders selling more of their shares; the volume should be increasing. After all it is well known that when smart money (major holders) smell a rat, they will dump their shares immediately to secure their money. But so far there is no sign of shares being dumped in bulk.

Can it be then that the smart money are not selling? It must be! In fact, it must be the smart money who are buying, because who else dare buying shares when the sp is acting like a dead cat falling out of a ledge.

Yesterday the price closed at its low. At face value, a red candle with its close at its low is very bearish. But the low volume doesn't validate that bearish move. The low volume yesterday indicated the supply was drying up. That is a successful Secondary Test to the smart money. And VSA has established that a move up or a move down that is not validated by the volume will reverse. So I think the sp will go back trading within the trading range next Monday.

Anyway, as far as I can tell, the indicators point to an accumulation. So for now I will stick to them that AKE is being accumulated. I will reconsider if the sp doesn't move back up within the trading range by next Monday close.

Now, will the sp move further down to close that gap? I think it will, if and only if there is a really bad news to scare holders to dump their shares in bulk. The fact is it takes as much effort to push the sp down as to push it up. It is not easy. So it will only happen if there is a more fundamental reason for the price to fall further.

Having said that, I must admit that I may have underestimated the prevailing bearish sentiment that is in fact powerful enough to push the sp that low. So as they say, time will tell.