LEL 2.33% 33.0¢ lithium energy limited

TLDR: Support and Resistance is everywhere, you just don't know...

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  1. 239 Posts.
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    TLDR: Support and Resistance is everywhere, you just don't know how to look for it.

    Pretty un-educated comment, I'll lay out some key levels for you...
    There is clear resistance levels, and a major support level.

    The green box is historical support, that dates back to companies listing. The low of the green box is the highest recored close from the first "pump" of the stock. SP has not dipped bellow this level, ever. Not to say it won't / cant, It's just obviously a support level...

    https://hotcopper.com.au/data/attachments/5624/5624433-6c85fdd3ca39d11cb361218096597a24.jpg

    Same applies to the Red Box, the bottom side of the red box aligns PERFECTLY with the Point of Control. (Red line) (Resistance)

    https://hotcopper.com.au/data/attachments/5624/5624474-0c060396b02b080f1d0b016bc0114dec.jpg

    PoC is:
    "the price level at which the greatest number of contracts have been traded within a volume profile" - The "volume profile" is the range in which the data is collected, in this instance, the entire history of LEL.
    The histogram represents where 61.8% of trading activity has taken place, indicating levels of low liquidity, and high liquidity, the PoC being the greatest level of liquidity. <--- This isn't some "Technical Analysis Wizardry" It's mathematically calculated data complied to represent factual levels of support and resistance, arguably more predictable than a news report...

    It is no coincidences that price reversed off the PoC after the breakout of the falling wedge, it was extremely predictable, however I assumed price would return to the 61.8 fib and continue it's trend, it has not, It has maintained, for the most part, control within the green box, which is historical support.
    Trading on low volume doesn't assist our trend, considering the low float of the stock, it's easy to affect price action.

    Accumulation level.
 
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