PLS chart, page-23314

Hi Folks

It seems very likely that we will get a flash bounce.

The majority of the Chinese stimulus package seems to directed to buying shares on the stock market to prop up and turn the downtrend around. I have read a number of articles about this.

Tianqi , CATL and Ganfeng have all surged. Some of this has translated to ALB, however not to SQM (as yet).

So a bounce is very much on the cards this week, hence the flash bounce.

I suspect that my "flash DCB" theory is very much in doubt. We should get the flash bounce however it may it more than likely will have legs enough to get past the previous recent high of 3.40. The cat isn't dead if that happens.

I very much doubt that this artificial buying of Chinese stocks won't continue in the short term. How much money and how long is the Chinese government prepared to throw at this? Unknown.

That brings me to the chart below. There is a big downward A-wave from 5.43 to a low of 2.31. With this package effect I can see the bounce going threw the 38.2% retracement FIB maybe even next week.

That will open up a 1st potential target zone between 38.2 and the 50% FIB.

If the Chinese don't turn the money flow tap off for a while then $4 is not entirely out of question.

The PLS quarterly report is due before the end of the month. I will be watching the $US price of shipped 5.3% Spod from the report.
To me it's the only reliable Lith price to look at. Fact not speculation. Last qtr it was $US840, which was up from the previous qtr $US804, so interested to see if the trend continues.

We shall see what p[lays out? DYOR

cheers Lies