Iam back in here as Iam very encouraged by the recent strength...

Iam back in here as Iam very encouraged by the recent strength in the broader Li space and what iam seeing over the medium term. I think we are seeing a genuine bottom in the space with a change in trend from the 2017 rolling over of the sector starting to take shape.

Having a look at the LPI daily chart, which has always been a laggard in the Li space, it look as though the 200day MA at 21c is the next level for a re-test. Once this is taken out Iam looking for a move back to 32c as the next target.
Interesting to see the Fibonacci retracement levels being respected, with the price action moving into the next zone. MACD breaking back higher above the 0 control line which is a very good sign. RSI also trending higher. Also positive to see the price action back above the 15day & 30 day MA.


The weekly chart is also setting up nicely with the MACD trending positive back to the 0 control line and stochastics about to roll back higher. Looking at the MA's, once the 30w MA at 19c (blue line) is cleared, the next level of resistance comes in at the 200w MA around the 31c mark.


Looking at the broader Li space, the flow of money back into the Lithium X ETF should not be ignored, taking this back to near 2017 highs, which tells me that broad based demand for exposure to the Li theme has increased once more.



What really caught my eye were some of the longer term setups and trend changes that are playing out for a few of the better known names in the space - GXY, PLS & ORE.

Having a look at the chart structure for PLS on a weekly basis, great to see the break up through the 15w & 30w MA's,back test and now a move higher once more with the 15w MA about to cross positive through the 30w MA. MACD trending nicely up through the 0 control line and the sotchastics and RSI shaping well. 60c is the logical medium term target here.


GXY - similar setup here with the weekly price action moving up through the 30w MA, which should it hold as all indicators continue to move further positive to support this move here, will see the med term break down in 2017 come to an end. The daily price action is suggesting that this will be the case, with a break and consolidation taking place above the 200d MA....