...the Xmas tree formation as I mentioned time and time again.
...when people look at this lithium chart, it is easy to interpret that lithium price has bottomed when compared against the peak. But the reality could also be that the lithium price has returned back to its normal price range before the surge attributable to Biden's famous Blue Wave victory (that sparked wild expectations of green investments including EV) and the commodity surge from the Ukraine war.
..the anchoring bias in our interpretation makes us believe that lithium price is cheap, because we compared against the peak. This is the same thinking we have when we look at a stock chart that has been smashed and believing that it is cheap looking at where its peak was. In most cases, the exuberant rise to the peak was unjustified in terms of the company's ability to deliver to what was expected and imputed into the share price. Rather, the price of the stock ought to, instead, be measured based on its market cap and where it stands relative to what is deemed reasonable in terms of forward outlook delivery.
Lithium prices still trying to find a bottom. What a crazy "Christmas tree" chart pattern over the past few years as #lithium went from boom to bust very quickly.. Certainly an epic chart
