LTR - Liontown Resources

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

Click to expand...

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...

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

Click to expand...

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.

Click to expand...

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

Click to expand...

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...

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...

rocket1172 said:

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

Click to expand...

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...