Lithium’s decline isn’t surprising

It is not a surprise that Lithium related stocks are falling.

They are mean reverting….back to their 200 week moving average (200 WMA).

Some have already done so, while others have more to go.

Some have registered oversold weekly readings too. Others are yet to do it.

In the weekly charts below, the stock price for each featured company is represented by the blue line.

The lithium hydroxide (Comex) futures price is in orange.

While some of the companies are mining (producing) lithium spodumene or lithium carbonate, you get the picture.

Before all of this carnage, many of them were trading at extreme percentages above that 200 WMA. That was a major warning back then which I wrote about and clients received those views directly.

Their fundamental valuations and capital expenditure plans is another discussion.

Gravity is indeed a bitch.

October 31, 2023

by Rob Zdravevski

rob@karriasset.com.au