When exuberance dies, it turns into HOPE, when hope dies, it turns into DESPAIR. A despair phase is about to start, there is no bottoming of the lithium price anytime soon. Why I am so sure?
Because every bottoming process sees an extended sideways consolidation after the sharp lower lows stop making new lows. You don’t suddenly see a sudden V recovery. This is what I call Winter Hibernation. My caution is not heeded and this is where we have now arrived to.
That said, a modest V recovery is possible IF
1. China introduces new bazooka stimulus
2. Kamala Harris wins the Presidency
PROVIDED the market does not tank/correct
And modest V knee jerk only which may not sustain if the economy does not improve from there
Lithium stock holders IMO won’t have time to see their stock price recover because the market will tank first before lithium price recovers. Lithium stock price will see further erosion in final capitulation that leads to despair and giving up. This is the phase that LT holders will put up stronger defiance to put out their ‘bottoming’ narrative - they will make the same mistake as those who held APX and CHN from inception of rally - they will surrender and end their denial after they have lost all their entire gains. Because they can’t bring themselves to sell their beloved stock below its all time higher, believing Better for Longer and selling tantamount to a betrayal of trust in the company they held for so long.
