PLS chart, page-4883

Ok so where are we at with the chart?

Well we are in wave 4 (a retrace wave within the 5 wave motive sequence up) IMO.

Now did we hit the bottom on Friday? Well from a Fib perspective we hit exactly on the .236fib of wave 3, which fulfils the guidelines (in red noted on the chart below) spot on to the cent.

IF And it is an IF that is the bottom of this retrace then we have a target of around $4.56. MACD and RSI will not be holding it back either.

Now if we do get upto around there, we will at some point have a fairly big ABC correction IMO.

So why has PLS not retraced harder? It certainly had the opportunity to go lower on Friday yet did not. Pretty mild drop really.

Well this is where FA ties in with TA in my opinion.

The NAS is off -15% Dow -7% SP500 -9%

In amongst that some big names have already corrected a lot Amazon -25% Netflix -43% Apple -11% Google -15%

In Lithium we have TSLA - 25% ALB -27% SQM -25% LAC -40% LTHM -33% AKE - 14%

PLS lost 10% by Friday afternoon from recent high. And because so many have already corrected decent amounts, I don’t see them falling too much further and drag PLS along.

Why? Is there a big correction to come?

Well I think PLS has a few things going for it, to allow it at least one more wave up. In no particular order:

1. SPOD only - Currently the most profitable area of the whole Li supply chain. Margin this coming Qtr likely to be over $2000 AUD T. More probably.

2. Next to No debt - will be generating alot of free cash. Note ALB has around $2bn USD in debt. Most US players balance sheets carry some debt.

3. Has down stream plans in place, which can be funded through free cash majority.

4. Based in WA. Not South America where politics and currency devaluation and inflation (look at Argentinian Peso) can play havoc.

5. Simple flow sheet, does not have potential for mass weather impact (brine and heavy rains etc)

6. SPOD Expansion plans.

The big potential negative for PLS is China relations.

Now let’s come to Monday. US lead is not great but I think our markets had already picked up that the US was going to have another shocker. Netflix was already off 20% in aftermarket Friday AM (prior to our open here) so NAS last night was always going to be in trouble.

So if we open on Monday and drop maybe a little, retest the $3.51, can even go a tad lower, and if find support, that could be the bottom of this wave IMO.

We do have the added bonus of a quarterly at some point, which should be decent. There is the Fed meeting Weds (P Hol here) but I think alot of that is pretty well telegraphed and built into the markets.

Apologies for the long post, could be a load of rubbish and we tank. That’s ok I have some cash on hand too.

Cheers and GLTAH