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Paulweller66

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01/06/21

11:13

Post #: 53558513
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Originally posted by taylorstjames ↑

Here's my humble take on where things are at.

The current SP presents a nice buying opportunity as I believe we are trading at the short term demand zone. Its also sitting quite nicely within the weekly S1 (0.325) and R1 (0.439) levels.

Given the solid and regular news flow, which is a massive kudos to the management that present facts and not use hype in the language of the announcements, I believe the sell off last week was due to a brief profit taking before the end of the financial year (one of those 'Sell-in-May-and-go-away' type moves). It was interesting to note that throughout all of this, the On-Balance Volume has barely dipped down, because the longer term accumulators were happily taking the opportunity to accumulate at the previous demand level (discount to what they would have been mandated to pay for)

The RSI correlates with this hypothesis showing that slight dip, and I believe the selling is over, as evidenced by the stabilizing of the RSI. It is currently sitting at < 50% which is slightly oversold.

What I could foresee is minor sideways movement before we quickly re-rate back to test the weekly R1 (0.439) and R2 (0.52) levels which would represent a very bullish sentiment.

Looking at today's news about Pit 5 and every day being one step closer to seeing the Goulamina deal materialize, I'd say we are in the last days before a massive re-rate to fair-value in the 60s and 70s before LithiumCo demerges.

All DYOR, Carn the mighty Finch!

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Appreciate the post but disagree re the selling. Why sell in May for tax purposes or whatever reason when the lithium deal is almost certain to drop in June. Selling has been Hartleys and new holders waking up to the geopolitical risk , imo. Need the political situation sorted before we move up .....lithium deal dragging on not helping either.

FFX Price at posting: 37.5¢ Sentiment: Buy Disclosure: Held
11 Upvote

0 Great analysis

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FFX_Chart Only Thread !, page-536

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