LTHM Dip Buy Head and Shoulders Watch

NYSE:LTHM   Livent Corporation
Lithium stocks, including ALB , SQM , an LTHM all had a major pullback Friday after Chilean President Gabriel Boric shared plans to nationalize the country's lithium industry and create a separate state-owned company to produce the metal used to make electric vehicle batteries.

LTHM got crushed last week closing down -5.01% at 20.66. LTHM also reports earnings next week on May 2. We are at a crucial spot where investors may look to buy the dip or if a larger selloff is just beginning.

Technical Analysis: LTHM has been in a descending triangle since November 2022. LTHM is also forming a head and shoulders, with the neckline around the 19.85 monthly level. On Friday, we did see investors buy the dip off of the bottom support which tested the bottom trendline of the triangle near the 19.39 monthly level.

If investors continue to buy the dip this week, we could see a relief bounce that could form a right shoulder before rejecting the trendline and a short GP in the mid 22s. If we break above the descending triangle resistance sine, we can target the Daily FVG from 24.51-26.25.

Look for downside if price rejects the short GP in the mid 22s and forms a right shoulder, or if LTHM cannot hold the neckline. Downside will be confirmed if we break below the green support of the descending triangle.

Upside Targets: 21.38 → 21.91 → 22.24 → 22.51 → 23.46 Extended: 23.99 → FVG (24.87 → 26.25)

Downside Targets: 20.30 → 20.06 → 19.85 → 19.51 → 19.39 Extended: 19.09 → 18.81 → 18.29


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