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LTR - Liontown Resources

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It hasn't been a terrific run for Liontown Resources (LTR) of late, but perhaps that run could be coming to an end in the short term.

A relatively rarish chart pattern has emerged on the daily chart (a 'key reversal bottom' formation) which has the potential to provide a reversal to the downtrend, which aligns well with the increased amount of volume seen in trading the stock over the past week. In addition, we're also seeing a cross-over of the negative DMI line over the ADX, and a potential challenge of the RSI against it's average RSI value (see chart below). Ultimate stop loss to the trade (or neglecting trade entry) is any market trade below the low of the signal day of 26th June (i.e.: below $0.835).

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IvoryWolf said:
It hasn't been a terrific run for Liontown Resources (LTR) of late, but perhaps that run could be coming to an end in the short term.

A relatively rarish chart pattern has emerged on the daily chart (a 'key reversal bottom' formation) which has the potential to provide a reversal to the downtrend, which aligns well with the increased amount of volume seen in trading the stock over the past week. In addition, we're also seeing a cross-over of the negative DMI line over the ADX, and a potential challenge of the RSI against it's average RSI value (see chart below). Ultimate stop loss to the trade (or neglecting trade entry) is any market trade below the low of the signal day of 26th June (i.e.: below $0.835).

View attachment 179602

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Am I right in saying that eventually a down trending stock like this becomes "value"?
And would a reversal of the ADX be a more positive indication of the overall change?
I'd like to hear your thoughts. Thanks
 
rocket1172 said:
Am I right in saying that eventually a down trending stock like this becomes "value"?
And would a reversal of the ADX be a more positive indication of the overall change?
I'd like to hear your thoughts. Thanks
Click to expand...
There's no value in it if the Li prices stay low unless there is something happening in the background that we all don't know about. The other problem with the Li pricing is that it's coming out of stocking yards in China that have little to no regulation. I only see a pump and dump until Li prices go up to a meaningful level.

DYOR

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TimeISmoney said:
There's no value in it if the Li prices stay low unless there is something happening in the background that we all don't know about. The other problem with the Li pricing is that it's coming out of stocking yards in China that have little to no regulation. I only see a pump and dump until Li prices go up to a meaningful level.

DYOR

View attachment 179603
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A while ago LTR was a very favoured stock, one of which i traded very successfully until it started to run on four flat tyres.
 
farmerge said:
A while ago LTR was a very favoured stock, one of which i traded very successfully until it started to run on four flat tyres.
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It all started to get suspicious for me when the bank funding was pulled just before the first run of the processing plant. They do have some fixed supply contracts with manufacturers so they're not entirely 100% relying on market prices. I pulled my money out at a loss, the ore grading was another bit of a suspect thing that I didn't like and it's an expensive underground mine that is not favourable with a low ore prices.

I wish everyone the best of luck but it's just too risky for me at this stage.
 
TimeISmoney said:
There's no value in it if the Li prices stay low unless there is something happening in the background that we all don't know about. The other problem with the Li pricing is that it's coming out of stocking yards in China that have little to no regulation. I only see a pump and dump until Li prices go up to a meaningful level.

DYOR

View attachment 179603
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Thanks for your reply which all makes sense to me... I found this info... I don't take credit for the pic.. I borrowed it 😎
 

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rocket1172 said:
Am I right in saying that eventually a down trending stock like this becomes "value"?
And would a reversal of the ADX be a more positive indication of the overall change?
I'd like to hear your thoughts. Thanks
Click to expand...
Thanks for your response @rocket1172 , which raises some interesting questions.

Personally, it's not so much a question of value (I'm more of a momentum / swing trader), but to other investors it certainly could be. The price action on 26th June was quite dramatic with respect to volume as well as price action, as explained in the video, which sets up the formation that you see in the chart. Combine this with the other aspects that have been discussed in the thread overnight, especially the short positions that are being taken at present, and all of these aspects could act as additional catalysts for price movements to the upside should further momentum take hold alongside the potential increases in lithium prices that are begin observed (short sellers would be quick to cover their positions if higher highs are made off the lows for both lithium prices as well as LTR).

With respect to the ADX, as discussed in the video, the recent cross-over of the negative DMI (red line) over the ADX (orange line) is a very intriguing coincidence. Should this be followed by a curl in the ADX to the downside, then yes I agree with you that this could be a more positive indication of the overall change as discussed in the video.
 
IvoryWolf said:
Thanks for your response @rocket1172 , which raises some interesting questions.

Personally, it's not so much a question of value (I'm more of a momentum / swing trader), but to other investors it certainly could be. The price action on 26th June was quite dramatic with respect to volume as well as price action, as explained in the video, which sets up the formation that you see in the chart. Combine this with the other aspects that have been discussed in the thread overnight, especially the short positions that are being taken at present, and all of these aspects could act as additional catalysts for price movements to the upside should further momentum take hold alongside the potential increases in lithium prices that are begin observed (short sellers would be quick to cover their positions if higher highs are made off the lows for both lithium prices as well as LTR).

With respect to the ADX, as discussed in the video, the recent cross-over of the negative DMI (red line) over the ADX (orange line) is a very intriguing coincidence. Should this be followed by a curl in the ADX to the downside, then yes I agree with you that this could be a more positive indication of the overall change as discussed in the video.
Click to expand...
Thanks for your time to reply.... I'm always learning... I don't pick bottoms because I'm no good at it... Yet... Thanks again 👍
 
rocket1172 said:
Thanks for your reply which all makes sense to me... I found this info... I don't take credit for the pic.. I borrowed it 😎
Click to expand...
The Australian Li mines actually deal in spodumene for mainly battery-grade, it's not really the same as Li carbonate but the prices tend to follow the same parallels though. The spodumene Li is more sought after depending on what expert you listen to. The Chinese battery producer pricing is still very low in the grand scheme of things in my opinion and Genfeng supplies come directly from their own mine in Australia which they own a small percentage of, the amount they get from it I'm unsure.

LTR is in its infancy and they'll need to iron out many of their processes before becoming more efficient, another thing to consider is there are many lithium mines in the care of maintenance waiting for the price of Li to climb again.

DYOR



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Good evenig
Hmmmmm a rally within a long-term bearish trend, driving its MACD above the signal line. Will watch what it does tomorrow then ...

Not holding
Have traded.

Kind regards
rcw1

Daily Chart
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15 minute chart
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