Daily Discussion, page-8056

So how did RDN do this week?

In my Charting analysis we can see RDN is in an accumulation channel for the past 3.5 weeks.

On the weekly chart can see how it bounced strongly off the 200-MA line (white) and 2c price point, with volume. A very bullish signal for the weekly chart and has since gone from there to push back up to the 2.3 to 2.5c level and staying in this accumulation channel.

This same accumulation channel happened at the last bottom, before that breakout run from the 2c level to the 5c level when there was a positive change in Lithium sentiment back in April before that sentiment changed back to negative in June and RDN price followed.

The MACD on the weekly is bottoming out and starting to turn up, the weekly though is a lagging indicator and better to use the Daily for a faster idea of what's currently going on.

The Daily Chart we can see a MACD Divergence has formed, where the price has moved lower but the MACD has been moving up, this is a bullish pattern.

The MACD on the daily crossed up (golden cross) on the 1st of August, the price only dropped after the Japan fiasco and US recession fears but those have since passed and things are lookng up. Daily chart trending up on the MACD even though the share price is moving sideways in the accumulation channel. This will catch up soon enough and the price will breakout over 2.4c.

Can see how twice 2c was rejected and bounced off and since then 2.2c has been a strong support level and the base of that accumulation channel.

The daily also shows the 25-MA, 9-EMA and 13-EMA lines all convering together around the candles and at a bottom base which is a bullish signal, can see how it's similar in the first accumulation channel before the breakout run.

2.6c is the first resistance level to break.

With US recession fears alleviated, overall sentiments should slowly improve.

PLS is the biggest indicator of the Lithium bottom being in. First they acquired the project of one of their smaller explorer neighbours here in Australia KAI for $20m at the start of August and now have acquired the more advanced $LRS over in Brazil and at a premium.

PLS have a habit of acquiring projects at the bottom of the Lithium cycle (Altura 2020).

When the big players start acquiring other companies and projects like this at a time the rest of the market is staying away, that's the smoke signal for the bottom. Doesn't mean it's a V-Shape correction, it's not a flat surface but a ranging area and general sentiment.

Hopefully RDN can get some good news soon to give the catalyst needed to breakout to that next level, but if that doesn't come it will move along with the Lithium sentiment and when Lithium prices start to recover we'll see RDN push up with it.

Overall lithium stocks ended positive for this week, including PLS +5.84% and Azures' new owners SQM +3.67%, ALB +8.63% just to name a few.

Have a great weekend!

Daily Chart




Weekly Chart