PAST IS PROLOGUE
After an explosive start to 2016, Lithium stocks spent the back half of last year consolidating gains. Going into 2017, it appears Lithium stocks are once again poised to energize portfolios. Below is a technical view of the Global X Lithium ETF $LIT:
As can be seen in the weekly chart above, price spiked above the multi-year downtrend (blue-dotted line) in June 2016. Price then began to consolidate gains as it retraced to test support at the multi-year trend line before advancing higher and completing the right shoulder of an inverse head-and-shoulder bottom formation (purple). In recent weeks, shares broke above the neckline of the inverse head-and-shoulder formation. The volume advance this week confirms the breakout and targets a move to $33.
Below I present charts for some of the more interesting Canadian Lithium juniors:
Nemaska Lithium $NMX
Market Cap: $454 mln
Lithium Americas $LAC
Market Cap: $256 mln
Critical Elements Corp $CRE
Market Cap: $80 mln
DISCLOSURE & DISCLAIMER
The author is long $LAC.TO $LACDF.
The author is not a registered investment advisor and the article expresses their own opinions. The author is not receiving compensation for the article and has no business relationship with any company whose stock is mentioned in this article.
This article is provided for information purposes only, and is not intended to be investment advice. All readers are encouraged to perform their own due diligence and consult with a licensed investment advisor before making any investment decisions.