Hi all, here's a couple of updated charts looking at...

Hi all, here's a couple of updated charts looking at correlations between different Lithium related stocks and also a Lithium Carbonate chart.

As well as GXY's major customers I've included our mates PLS, ORE, ALB and SQM- as well as glamour boy Tesla. This time the comparison starts at the beginning of October 2020, which seems about the time the market decided the price increase of Lithium Carbonate was going to stick after bottoming in mid August, and all the Lithium producers started to move upwards as a group. The directional correlation between all these is really tight, but interestingly PLS has had by far the greatest percentage increase, followed by GXY, then the rest in a tight cluster. Tesla has not fared nearly as well in comparison during this period, however it's a different story if you start the comparison back in April where the disciples at the temple of Elon have absolutely smashed it.

It's been said before by more than a few posters that the main driver of price and resulting correlations is simply the Lithium Carbonate price, and it's really obvious when you look and compare Lithium producers price movements that this is the case. Pretty much nothing else seems to matter or have nearly as big an impact. Is there anything we can take from PLS's out-performance compared to the rest? A question for the experts here- do hard rock producers benefit to a greater degree with Lithium price increases, or is this not a thing?

So why has price on all these lithium producers pulled back and consolidated since the recent peak at the end of January? If you have a look at the Lithium price chart, it's right at a level where price was range bound and went sideways for 9 months from September 2018 before finally breaking down in June 2019. Could it be that as price approached this level in January and with Chinese New Year about to hit, that this provided a sensible spot for profit taking and taking a bit of risk off until it was clear if the Lithium price could continue it's movement up? Hence the indecision that our charts were showing at the time.

What is interesting though, is the Lithium price for the moment seems to have resumed the strong upward direction, but none of the producers have yet reacted. Maybe the Lithium price needs to put in another week of gains to break above this level before those with the money are confident enough to resume the drive up? Sheesh it could be explosive if the Lithium price decides to continue the run. The charts for all of the producers are showing volatility contraction with the Bollies tightening and volume dropping over the last 5 weeks- especially GXY, PLS and ORE. Contraction leads to expansion- hopefully upwards! If I get a chance I'll post some individual charts for these that show some interesting bullish volume appearing that looks encouraging.

Good luck everyone.


Here's the Lithium Carbonate chart from Investing.com: