I’ve had several requests for analysis on LIT, the Global X Lithium ETF, as well as any individual lithium stocks that stand out as potential swing trading or investing opportunities. I plan to start building a watchlist of individual lithium stocks today, starting with the individual components of LIT & would welcome any lithium-related companies that others are currently trading or monitoring. I’ll post charts & analysis of any individual lithium stocks that look compelling here on the front page and/or within the trading room.
There appear to be some technical cross-currents with LIT at this time: The large divergent high from mid-January followed by the breakdown & backtest of the primary uptrend line would portend a major top in LIT with more downside to come in 2018. However, should the potential small bullish divergences currently forming soon be confirmed via a bullish crossover on the PPO, that would sharply increase the odds of a rally over the next several weeks+ with the possibility of another backtest of the trendline before a resumption of the downtrend that started off the mid-Jan highs.
As such, I am near-term cautiously bullish (and will become more bullish if/when LIT rallies from here with a bullish cross on the PPO soon) while longer-term bearish on LIT at this time. While my opinion is not very strong at this time, I should have a better read on both the near-term & longer-term outlook for the lithium sector once I’ve had time to review the majority of individual lithium stocks within LIT as well as the charts of lithium prices*. (*If anyone knows of a website or charting service that provides a long-term chart of lithium prices with the ability to add technical indicators to the chart, please let me know as most charting services that I use do not provide historical chart data on lithium prices).