New TA/Charting, page-13979

I posted a variation of this chart a little while ago whereby I identified the points of liquidity and stated that if they were hit then price would fall dramatically. We needed an event to make that happen. Today we had that event. I would go so far as to suggest that the next event will be the publication of the review being undertaken. This is not the end of this correction - IMO.

I would also refer you to the RockStock Channel Ep.57 again as there was a discussion about this very situation.

I don't post charts that often these days because when you see different things to the prevailing mindset you get hammered.


In the above I have included the Lithium futures index to highlight the difference between where LTR's price is and how far it has fallen compared to the LTH1! price. Anything above that is price overhang (irrational exuberance) and at some stage will revert to an equilibrium position (mean reversion). From what I can observe equilibrium has not been reached. Either the price of Li needs to increase dramatically in the near term or the price of Li stocks will continue to fall. BTW this situation was made much worst with the bid from ALB and the pumpers who weren't happy with $3 per share, despite the offer being agreed to by the Chairman and the BoD.

IMO DYOR