Interesting move today. Looks as though the buyer has filled their boots for the time being, with any hot money riding the move high being caught out with the lack of firm bid in the market this morning.
Doesn't help that the broader market is weakening and testing support around the 5,650 level and other lithium names (GXY, PLS, KDR) taking a breather from the recent strong rallies in share price. LPI certainly isn't immune to this.
Technically when an up trend or down trend moves away from the bollinger band + keltner channel, it will revert back to 'mean' pricing. A handy signal when looking for a buying opportunity.
A quick look at the charts tells me that if broader weakness in markets sustains, we can expect LPI to pull back further from here, based on the technicals that haven't even started to move out of significant 'over bought' territory.
I would be stepping aside if the $0.40 is taken out, as this is a key fibonacci support level. 'Mean' pricing starts to come back in around $0.38, with the next levels of support at $0.365 and then $0.335.
I will be looking at those fibonacci retracement levels below the $0.40 mark, with a view to re-enter.
