We covered graphite in recent weeks and months extensively. Yes, we are really bullish on this sector. We should say that both graphite and cobalt are wildly bullish right now, and we predict this in our graphite and cobalt forecasts. The first breakouts in the graphite space are a fact now. This suggests that the rest of the sector will follow. We said so, in time.
Why graphite? Very simple, because graphite is a critical component in rechargeable batteries in the fast growing EV. More importantly, there is not enough graphite to satisfy demand, and the deficit is expected to hit the world in some 2 years from now. Needless to say, markets will react way before a real world event. That’s what we are seeing in graphite stocks right now.
The dynamics of a really bullish sector like graphite, especially in the commodities complex, is that a few leaders start a breakout before the rest of the sector follows. We noticed this in the lithium space a few months ago: in July, the first breakouts started but most of the sector followed in Sept/Oct. Things went fast since September: multi-fold returns followed in a matter of 3 to 6 weeks.
We believe the graphite sector goes next.
This is the first graphite stock to break out. Tiny detail: we tipped this stock in a December 11th update to our premium members in our Momentum Investing service, two weeks before the breakout took place.
Syrah Resources broke out on an offtake deal with Tesla. We could not know that an offtake agreement would come, but we could see early December that something big was happening on this chart.
Last week, one of our top graphite tips Renascor Resources broke out. We tipped this stock at 0.135 to our Momentum Investing members, a few days ago it printed an intraday high at 0.27, exactly 100% higher.
Two graphite stocks confirmed a breakout, this bodes well for the rest of the sector.
It is late to enter the above mentioned stocks, they already doubled since we tipped them to our premium members. Never chase prices, it’s not a good idea.
