ALERT: Kutyak Flying Drone (KFD) potential upside break. Remember this is a new pattern, spotted by
@Kutyak. Further analysis required to nail down the finer points and characteristics.
US markets green. Lithium majors ALB & SQM faded late but that's not necessarily a lead for ASX Lithium.
A few of us called the gap close a while back and as much as I hoped it wouldn't, it did. Good news is it's out of the way now and the lower gap is IMO a breakaway gap. One of the 8.6% that don't fill.
I also previously talked about technical levels and how the BEOT trigger these to induce panic in retail holders. Well haven't they had a field day. I hope you all trusted your own analysis and topped up if funds were available.
As much as we detest the behaviour, ASIC for taking no action and Junior Trader Waterboy FW's who are tasked with carrying out the gutter work here, it does provide opportunity to put pressure on them to close positions. We know what that's called and we have seen a bit of that the last couple of days.
TA. We hit the resistance line yesterday, 202. It would be positive if price get's above this and holds. I would like to see it get back above the 21 & 55 SMA's which have converged. The technical damage inflicted may require some consolidation before it does this.
The RSI did not drop to the oversold level as was being called by the FW waterboys. See the red line below the RSI indicator. RSI has bounced off this again, as it has for the entire uptrend since March 2020. I could only envisage an oversold condition if the entire market has a meltdown. RSI oscillating from a mid reading to overbought is a classic uptrend characteristic.
The news flow from PLS is strong and this stock is now on the radar of all the investment houses with a shareholding that is held tight so it won't be easy to get a good position size unless they can extract shares from Mum & Dad. This also gives comfort in that shorters cannot inflict too much damage as the risk/reward ratio is low. Personally I think you would have to be an absolute moron to be a shorter of PLS but hey,
[email protected] seems to think he has it nailed.
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