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Aussie Spodumene Miners Potential Bottom - GXY

Pricing Strengths Pre & Post COVID Despite Weak Fundamentals Outlook
Potential market bottoms forming for PLS & GXY.
Buy recommendation for low-cost brine and scalable spodumene producers.
Catalysts
Considerations
Potential market bottoms forming for PLS & GXY.
Buy recommendation for low-cost brine and scalable spodumene producers.
Catalysts
- relative performance of brine players such as ORE pre COVID vs. relative strength in spodumene producers after COVID selloff
- Higher than expected adoption for EVs from government
- GXY's Expansion plans
- Potential candidate for hedge against future inflation
Considerations
- Large increase in spodumene prices in the near term likely to be curtailed by existing players scaling proaction as soon as prices allow
- Current consensus of glut being resolved in lithium market is late 2021-2022
- Strategic partners & funding
- Short Squeeze/Fundamentals failing to keep up with pricing
Entry: Average price of $1.10 on 03/08/2020
Stop Loss: $0.685
Nota
Increasing volatility ahead. Just on a side note: ALB & SQM are approaching key resistance levels.
Dagangan aktif
Update: Increase stop loss level to $1.0Capital at risk: 10%
Nota
Note: This is not technical or fundamental analysis. It is purely a hypothetical scenario. With regards to Strategic partners & funding, there is a company called CATL that completed a 2.85 billion USD capital raising earlier this year with plans to vertically integrate into next generation battery/FC production chain.
This means that GXY's and CATL interest may potentially align. CATL may appear as an interested party for GXY's future capital raising.
If I am a sophisticated entity with insider information if things are heading into this direction(which I have no clue), then I would be hoarding shares right now.
Dagangan ditutup secara manual
Trade closed manually @ 1.165 to lock profit due to today's gap.Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.