I’m still primarily trading on Technicals; therefore I’m looking at the charts and try to identify certain patterns that I associate with “more likely than not”. The way a stock is traded over time and at different times of the day may also give me an indication of Market Sentiment.
Therefore, any comments of mine, including terms like “support”, “resistance”, “blue sky”, have to be taken in that context.
Having said that, I also want to make it clear that I – more often than not – attempt to “understand” the nature of a company, as well as the sector it operates in, its neighbours and competitors.
The Lithium space is currently en vogue and attracts a lot of wannabes, hasbeens, and letstrythis. As far as I’m aware, none of the Pilgangoora players is anywhere near to mining and producing saleable goods. That makes GMM (who picked up GXY’s mine that’s been on C&M) the only near-term producer I know of. With their Sal de Vida lakes in Peru, Galaxy are also quite a distance away from selling product; but if GMM get Mt Caitlin back up, both would benefit from any revenue.
In short: If I was only investing for the long term, i.e. looking for solid producers with reasonable revenue prospects, I’d concentrate on GMM and GXY. Indeed, I did that for most of the time, but since the charts suggested to me they’re currently at “fair value”, I took profit and am now looking at some possible up-and-comers for a few rather short-term trades. If one or two turn out to run hard into “blue sky”, I won’t argue and happily stay for better profits – “as long as it takes …”
PS: small detail as an aside – when it appeared that PLS would close on today’s High, I added another bid to add to the ones I’d bought earlier at lower levels; LIT seemed to go the other way, so I reduced my holding, taking a small profit and only carrying a half position overnight..
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