Lithium stocks were destroyed over the last few weeks.
However, it looks like the pullback is overdone.
For one, according to SQM, it’s “confident that the boom in electric vehicle (EV) sales will be a crucial driver of global demand for the soft white metal. Electric vehicle sales worldwide are expected to rise by around 30% this year, while lithium demand will increase 20%, the company forecast in its 1H23 results report,” as noted by CNAmericas.com.
Two, Albemarle expects to see higher lithium prices and supply tightness. In fact, on its second-quarter earnings call, CEO J. Kent Masters said, “Customers are returning to the spot market after destocking to unsustainably low levels of inventory against the backdrop of growing demand, with lithium inventories decreasing in the supply chain over the last few months.”
Three, according to a Seeking Alpha article, “Supply constraints may also be a major driver for pricing... Lithium production from existing mines is expected to flat after 2025, while the contributions from new mines are also minimal, as the sector remains under-invested.”
That being said, investors may want to push back into oversold lithium stocks, such as:
Albemarle (ALB)
ALB has become ridiculously oversold at major support. It’s also over-extended on RSI, MACD, and Williams’ %R at the moment. From its current price of $189.74, we’d like to see the stock initially rally back to $213 a share.
Imagine that you are an event trader and all the conditions for a Green Alert Day have been met. Day after day, sellers have dominated in the trading action, driving the market to greatly oversold levels. Recent economic indicators have been negative, which means the economy is crawling along. The only positive for the market is that, at the moment, tensions around the world have subsided. There is no nagging uncertainty to keep investors at the sidelines.
Now imagine that before the bell, Microsoft announces spectacular earnings and says its future earnings appear strong as well. A Green Alert day might unfold before your eyes. The market is oversold and there are no prevailing conflicts or uncertainties. The market will very likely go up, perhaps way up. It is time for you to act, to jump into an index call option.
Green Alert Days
When the conditions necessary to create an Upside Green Alert Day occur, don’t hold back. Take the risk with Nasdaq 100 contracts. To make the most of the leverage provided by options, buy as many Nasdaq 100 contracts as you can afford.
Here’s your chance to become a bonafide “Insider” at the wildly popular Top That Trade weekly debate… syndicated on more than 100 TV stations around the world.
Being an “Insider” is not only fun and exciting… it’s empowering!
As a valued Triple-T Insider, every Friday a Top That Trade Insider Briefing will be delivered to your inbox…
With a direct link to the current Top That Trade episode and tantalizing insight you won’t find anywhere else… here are this week’s topics!
PLEASE READ: Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC’s website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. You should always consult with your own professional advisers regarding equities and options on equities trading.
1) The information provided by the newsletters, trading, training and educational products related to various markets (collectively referred to as the “Services”) is not customized or personalized to any particular risk profile or tolerance. Nor is the information published by TradeWins Publishing (“TradeWins”) a customized or personalized recommendation to buy, sell, hold, or invest in particular financial products. The Services are intended to supplement your own research and analysis.
2) TradeWins’ Services are not a solicitation or offer to buy or sell any financial products, and the Services are not intended to provide money management advice or services.
3) Past performance is not necessarily indicative of future results. Trading and investing involve substantial risk. Trading on margin carries a high level of risk, and may not be suitable for all investors. Other than the refund policy detailed elsewhere, TradeWins does not make any guarantee or other promise as to any results that may be obtained from using the Services. No person subscribing for the Services (“Subscriber”) should make any investment decision without first consulting his or her own personal financial adviser, broker or consultant. TradeWins disclaims any and all liability in the event anything contained in the Services proves to be inaccurate, incomplete or unreliable, or results in any investment or other loss by a Subscriber.
4) You should trade or invest only “risk capital” – money you can afford to lose. Trading stocks and stock options involves high risk and you can lose the entire principal amount invested or more.
5) All investments carry risk and all trading decisions made by a person remain the responsibility of that person. There is no guarantee that systems, indicators, or trading signals will result in profits or that they will not produce losses. Subscribers should fully understand all risks associated with any kind of trading or investing before engaging in such activities.
6) Some profit examples are based on hypothetical or simulated trading. This means the trades are not actual trades and instead are hypothetical trades based on real market prices at the time the recommendation is disseminated. No actual money is invested, nor are any trades executed. Hypothetical or simulated performance is not necessarily indicative of future results. Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Simulated trading services in general are also designed with the benefit of hindsight, which may not be relevant to actual trading. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. TradeWins makes no representations or warranties that any account will or is likely to achieve profits similar to those shown.
7) No representation is being made that you will achieve profits or the same results as any person providing testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have experienced losses.
8) The author experiences are not typical. The author is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position and other factors. Certain Subscribers may modify the author methods, or modify or ignore the rules or risk parameters, and any such actions are taken entirely at the Subscriber’s own election and for the Subscriber’s own risk.
If you wish to stop receiving our emails or change your subscription options, please Manage Your Subscription TradeWins Publishing, 528 North Country Rd., St. James, NY 11780
0 Response to "Three Top Ways to Trade Oversold Lithium Stocks"
Post a Comment