GLN is looking really strong today. The broker data that 8horse...

GLN is looking really strong today. The broker data that 8horse posted here tells the story. Often the broker data is fairly mixed and doesn't really give you a good feeling for what is going on but that data is quite definitive. This is also true when you look at where the shorts are being placed.


Basically, retail has been dictating the direction over the past couple of months with some company valuations becoming outrageously disconnected from reality. One thing is for sure - it won't last forever.

Anyway, on to the charts. The weekly Heikin Ashi is looking like I was expecting in my previous post. That is, a large green candle formed out of the compressed consolidation candles which is now being followed up with a series of large green candles. I'm expecting that these will compress down around the $2.50 area before the next move up (i.e. I'm only expecting a small retracement at this point, perhaps back down to where we are now, before moving onto $3 and above).


Interestingly the weekly MACD moved into the buy zone last week where I'm expecting it to stay for the next few weeks. Further supporting that we have much more to come in this run up.

In terms of the daily price action I was surprised to see us blast through the $2-2.07 range without much resistance - although the market got itself into a bit of a frenzy so perhaps not so surprising in that context. The retracement to $2.06 today makes sense in that respect but again I'm surprised to see us bounce off that level so quickly. I think the broker data, the short positions forming/growing day by day, and the price action of GLN today, are all pointing to the same thing. There seems to be a growing awareness of where the value is in the Lithium market, and where it is not.



ALL IMO DYOR.