From Market IndexST/LT Trends: ⬆️/⬆️Price Action: ⬆️Peaks &...

From Market Index

ST/LT Trends: ⬆️/⬆️

Price Action: ⬆️Peaks & ⬆️Troughs

Candles: Predominantly demand-side

Key levels: Supply @ $50.84 vs Demand @ $48.74, $49.07

View: I tweeted the odd Pilbara Minerals chart over the course of 2023. I turned bearish after the two big black candles on 14-15 August. Judging by the replies to my tweets since that time, I propose Pilbara Minerals has possibly the most loyal shareholders of any ASX company! They certainly didn’t like my views on their darling!

Well, I have some good news and some bad news PLS loyalists. The good news is the chart shows some very solid signs of a major low being bashed out. I’d say there’s better than a 50-50 chance $3.10 will stand as a major turning point.

The massive white candle on that day is typical of short covering – and we all know how important this will be for PLS. Higher peaks and higher troughs since, along with a spattering of demand side candles demonstrates some speculative and positional buying since then.

The bad news is the $4 level appears to hold with it some motivated supply. The recent peaks at $4.01 and $4 on 15 December and 2 January respectively demonstrate this. Troughs continue to print higher – that’s encouraging because it speaks of continued building demand.

Ideally, we don’t see a close below $3.71, but before that, preferably not below the ST trend ribbon (currently $3.77-$3.81). Basically, if PLS can clear that pesky supply zone, it could continue its climb back towards the major August peak. Black candles / upward pointing shadows will kill this rally, while a big black candle closing above $4.01 and preferably the LT trend ribbon (currently $4.07-$4.11) will redeem it.