Out of interest which LIT are you looking at? I'm looking at Global X Lithium & Battery Tech ETF (LIT) and the prices are different. I can see what you're alluding to but for me when I look at this chart it looks like it tends to either touch or at least get close to the white EMA before going for the next leg down.
At the moment we are far far away from that. Can't argue volume has decreased but I would say not many people would be buying alot until after CNY.
Just my hypothesis but it seems all eyes are on that. Buying now, just seems like gambling. I doubt it will remain flat after the restock. It'll either break lower on over supply narrative being reaffirmed or break up if the Li price begins to shift up.
If I were to gamble, I would say restocking will raise the Li price slightly, like in the last 3 years. This will help the stock climb toward the white EMA, might not touch but get close and then that's when the real test begins. If it can break and sustain, maybe the signal for a trend reversal and if not then the next leg down we go.
WR1 Price at posting:
60.5¢ Sentiment: Buy Disclosure: Held
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