With that being said, I was able to add a fairly well-defined trendline to this 4-year chart of lithium, with the current correction off the early Jan ’18 highs bringing prices down to currently test that key uptrend support. As this is the first test of that uptrend line in just about 1 year, the odds for at least a minor bounce from here is good IMO. As such, my near-term bullish outlook for lithium prices also meshes with the near-term bullish scenario that I laid out for LIT in the post above.

From the Global X website: The Global X Lithium & Battery Tech ETF invests in the full lithium cycle, from mining and refining the metal, through battery production.

As such, those looking to trade companies that are a pure play on lithium prices, such as mining companies, should also factor in the technical & fundamental outlook for lithium, as rising prices should benefit the miners just as rising gold prices benefit gold mining companies. Battery manufactures may or may not own a direct stake in a mining or refining company(ies) & those that don’t, would be more likely to benefit from a drop in lithium prices that are a result of excess supply at from the producers vs. a drop in global demand for lithium batteries, which is detrimental to both the end producers (battery manufactures) as well as the miners, as demand for lithium will fall, assuming that production (mining output) stays constant. As such, unlike GDX, in which nearly all components of that gold miners ETF will rise during a bull trend in gold prices, that may not be the case with the components of LIT.

Thx for sharing that. I’ll follow up with any additional thoughts I have on the lithium stocks after I finish building my Lithium Stocks watchlist & review the charts of the individual stocks.