Hi Germanian, it's more than possible for sure. Using Procapitalism's chart as an example. The entire lithium sector looked overbought on the monthly. We've all had an impressive run up to just before the correction. This was of course triggered no doubt by the negativity surrounding the reports of over supply following the SQM corfo ordeal. However, the tailwind to this could be interpreted as the divergence of price action rising to far from previous supporting indicators i.e. baseline (kijun) and tenkan support lines, also pointed out by Procap. Whilst nobody could say for certain that it's the case, market makers can use such scenarios at previous high price action coupled with an overbought stochastic indicator that maintained consistency since 19th December last year. Furthermore, they could use this as a sign of "market complacency" and thus, perfectly executed a coordinated short attack prompting the correction we see today. However, the good news is as price action will need to converge just as divergence gets too far ahead and the market will (hopefully) return to equilibrium on oversold stochastic indicators supported with the positive news (our friends here have been posting numerous articles on why the boom is only gaining traction, as well as input from industry experts like Joe Lowry) pair this with already known impressive company foundations and we have a very high probability of a successful run. Again all IMO, best of luck.
GXY Price at posting:
$3.48 Sentiment: Buy Disclosure: Held
