Cobalt stocks had a phenomenal year in 2017. In the 2.5 years that followed it was a real drama for cobalt stocks. A few months after the Corona crash the cobalt market started rebounding. And as we kick off 2021 we see huge reversal patterns on the charts of a few leading cobalt stocks. Moreover, the long term cobalt price chart suggests a giant basing process is in the making … and it might be completing as 2021 kicks off. We have a very bullish cobalt stocks forecast for 2021. Our rare earth metal stocks forecast for 2021 is bullish, our lithium forecast for 2021 is bullish, but our cobalt stocks forecast for 2021 is maybe among the most bullish 2021 predictions in our series of global market forecasts.
In this cobalt stocks forecast for 2021 we look primarily to the long term cobalt price.
As per this cobalt price chart (source) the cobalt price went through the roof in 2017, it started right after the 2016 market sell off (early that year).
What’s much more interesting and relevant is what’s going on right now, and what to make out of this price chart going forward in 2021. Also how does this chart inform us on our cobalt stocks forecast for 2021.
We see 2 higher lows in the last 24 months on this cobalt price chart.
Looking at this chart in the last 5 years we see 3 higher lows.
That’s not interesting, that’s extremely interesting particularly because this truly is a forgotten sector! After all those revivals in almost every sector post-Corona crash we don’t see a lot of ‘forgotten sectors’. Cobalt stocks are one of them, the cobalt price is one of them.
When it comes to cobalt stocks it becomes pretty interesting, for a few reasons:
- There is no sector ETF.
- Most cobalt miners are no pure-play miners, they focus on much more than only cobalt.
- Most cobalt stocks are small cap, micro cap or nano cap stocks.
- With the sell off since 2018 most cobalt stocks have lost even more of their market cap, making it even more difficult to identify them and invest in them.
- Several cobalt miners trade in Australia (ASX), which is an offline market, making it harder to invest in them.
That said, it should not stop us from finding the right cobalt stock to invest in, given our bullish cobalt stocks forecast for 2021.
We did identify our top 3 cobalt stocks for 2021, and have very precise price targets as entry prices. Our Momentum Investing members will receive this information in the next few weeks, with entry prices as ‘buy limit orders’ in a buy alert.
Enjoying our work? We invest in market segments in which momentum is brewing, and we do so with carefully chosen positions which we hold from a few weeks to a few months. Our Momentum Investing portfolio was up +95% in 2020. We are interested in commodities stocks, and lithium and cobalt stocks are also on our watchlist. Whenever we believe the time is right + entry prices are attractive, we will take a (small) position in a lithium or cobalt miner in 2021.