Normal
Kerry Sun in Market Index last night. Two Bob each way in my opinion but some may find it interesting*Lithium Carbonate Futures GFEX[ATTACH=full]175877[/ATTACH]An important candle in the context of the broader lithium carbonate rallyIf you had asked me before today’s session what I thought the probability was of today’s candle/volume combination appearing – I would have said bupkis!Today’s candle’s range is the largest in over two weeks, and its volume the largest in nearly a month. It indicates elevated motivation from the demand-side in a prevailing environment where I was increasingly believing there was none.If I’m surprised, I bet market participants are also trying to get their heads around what today’s move means for prices going forward.I suggest the supply-side might back away in the hope the newly found demand might get them a better deal down the track. The demand-side might feel some urgency to fulfil their requirements.Basically, it should put a proverbial cat among the pigeons – let’s see how high they fly.In this regard, we’re approaching several key historical points of supply beginning with 117,350 and extending all the way up to the major point of supply at 125,000.White candles and or downward pointing shadows in this range would further signal the demand-side’s new-found resolve, and therefore increase the likelihood of a major breakout.Simply, a close above 125,000 commences a new bull market in lithium carbonate – and I honestly didn’t think I’d have reason to type that last sentence any time soon. But there you go – I just did!If you asked me before today’s session what I thought the probability was of the lithium carbonate price closing below the key historical point of demand at 105,800 – I would have said it feels like an inevitability. Below that point we’re very much in resumption of the bear market phase, and who’s to say it won’t still feature in the not-too-distant future?.
Kerry Sun in Market Index last night. Two Bob each way in my opinion but some may find it interesting*
[ATTACH=full]175877[/ATTACH]
If you had asked me before today’s session what I thought the probability was of today’s candle/volume combination appearing – I would have said bupkis!
Today’s candle’s range is the largest in over two weeks, and its volume the largest in nearly a month. It indicates elevated motivation from the demand-side in a prevailing environment where I was increasingly believing there was none.
If I’m surprised, I bet market participants are also trying to get their heads around what today’s move means for prices going forward.
I suggest the supply-side might back away in the hope the newly found demand might get them a better deal down the track. The demand-side might feel some urgency to fulfil their requirements.
Basically, it should put a proverbial cat among the pigeons – let’s see how high they fly.
In this regard, we’re approaching several key historical points of supply beginning with 117,350 and extending all the way up to the major point of supply at 125,000.
White candles and or downward pointing shadows in this range would further signal the demand-side’s new-found resolve, and therefore increase the likelihood of a major breakout.
Simply, a close above 125,000 commences a new bull market in lithium carbonate – and I honestly didn’t think I’d have reason to type that last sentence any time soon. But there you go – I just did!
If you asked me before today’s session what I thought the probability was of the lithium carbonate price closing below the key historical point of demand at 105,800 – I would have said it feels like an inevitability. Below that point we’re very much in resumption of the bear market phase, and who’s to say it won’t still feature in the not-too-distant future?
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