From that Carl fella from Market Index…. Today I had the...

From that Carl fella from Market Index….


Today I had the pleasure of interviewing Pilbara Minerals CEO Dale Henderson. He was both very generous with his time and with his answers. The message I got was: We can't control the lithium price, so we're going to focus on controlling what we can control. In this regard, we're going to continue to ramp up production in the most cost efficient and sustainable way we can. The market will take care of itself.
I've talked at length of the many companies which reported first half earnings today, and Pilbara was perhaps conspicuous by its absence from the major gainers/losers lists. As a technical analyst, for me, the most important aspect of today's trading was the white candle logged by the close. It represents excess demand, and when found frequently in a chart's price action, steady accumulation.
I do see some signs of accumulation in the PLS chart, but it is limited by the broader bearish price action of generally lower major peaks, and the dynamic resistance so clearly being provided by the long term downtrend ribbon. On the other hand, rising major troughs confirm there is at least some modest buy the dip activity, and the short term trend is flattening towards a possible turn higher.
So, we're very much stuck in the middle here. I'm happy to let the price action to the talking, and wait for a close above 4.01 to indicate the demand-side has regained control, or a close below 3.25 (but preferably 3.10) to indicate the supply-side has regained control.