PLS chart, page-20341

Hi Slick

Just playing with my charts. I am continuing to visit the LIT eft and a leading indicator to the Lithium market.

The LIT Eft has been falling for just over 2 years. It was 97.13 in Nov 201 and is currently at 47.46, an extremely severe fall. With the recent low of 45.80 filling the third gap on my chart Pink 46.09-47.56 . There were two higher gaps filled Purple 56.62-56.94 and Blue 49.91-52.06.

On my chart I have included three waterline one for each colour. Notice with these waterline the SP approaches the waterline on on multiple occasions. Sometimes only splashing twice , occasionally dipping below before resurfacing. Another thing to notice is that the filling of gaps usually occurs around the waterlines. Also notice the severe leaks down to the lower waterlines.

This seems like a fairly regular pattern with peaks between the splashes on each occasion before the eventual leak. Currently the LIT eft SP is approaching the pink waterline again.

If this trend is to continue we are likely to see another leak Pink down to the newer lower green waterline which should be close to the as yet unfilled gap Green of 43.46-44.23.

On this chart I have include a still further lower unfilled gap Red at 37.7-38.04.and if history continues to repeat then a new lower Red waterline.

As I pointed out in an earlier post there are a further series of unfilled gap further below the Red gap. All the way down to a very large unfilled gap of 32.6-34.1..

Many will say that this repetitious chart will cease. It will but when?

The LIT eft in Mar 2020 was 17.83 (so just under a four year time period ago) and In under two years it grew by 17.8 times to 97.13. So currently at 47.46 it still so far way above that low.

For me, I will be watching this trend one step at a time. I don't fight trends in the charts until I see them clearly broken, The first critical signal that another leak is occurring is if the SP gets into the low 45's. If this plays out then that next lower unfilled lower gap comes into consideration and a new lower waterline. To be followed by another series of bounces as your can see previously happened on the chart.

It must be considered that we have seen three lower waterlines established in only the last half year. So it can move quickly.

Just the way I deal with the markets so that I am not surprised by what plays out, as always DYOR.

We shall see?

cheers Lies