Investing
Haven
No Result
View All Result
Wednesday, April 21, 2021
  • Login
  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
Crypto investing >>
Investing
Haven
  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
No Result
View All Result
Investing Haven
No Result
View All Result

A Bullish Lithium Stocks Forecast For 2021

by Taki Tsaklanos
January 02, 2021
in Commodities & Gold, Forecasts
0
Tags: 2021 ForecastsLIT
lithium mining stocks
3.7k
VIEWS
Share on FacebookShare on Twitter

Lithium stocks had an amazing close of the year (20 20). No surprise, there has to be a correlation between the electric vehicle trend and the inputs into the market, lithium batteries being one of them. It is rather clear from the charts that lithium stocks will perform well in 2021. We have a bullish lithium stocks forecast for 2021. No coincidence, our rare earth metal stocks forecast for 2021 is also bullish. We add this as another bullish 2021 forecast in our series of global market forecasts.

We will keep this article short and chart focused. We look at the lithium price chart and the LIT ETF lithium stocks charts, both on a longer timeframe.

Our foucs is on lithium miners that deliver inputs for batteries in the electric vehicle space.

Interestingly, lithium stocks performed well despite a rather low lithium price. Clearly, momentum in lithium stocks was caused by the electric vehicles trend.

The lithium price looks to be in a major basing phase now, and it looks like it is coming out of this base. This implies that there is more upside than downside potential in the lithium price.

Is this the next driver for lithium stocks, next to the electric vehicle trend?

Imagine what will happen with lithium miners once the lithium price doubles, as the trend looks to have started recently and the price has some 80% upside potential until it hits a first resistance area (80000).

lithium price

There is some fundamental research that underpins higher lithium prices in 2021 (source) but our followers know by now that we don’t look into fundamentals. We stick to the chart and price action, without technical indicators, which results in ‘price combined with price’ as our mantra.

Commodity research find Roskill has a very bullish view on a secular lithium trend driven primarily by rechargeable batteries (source):

In any case, the underlying demand growth for lithium compounds remains strong, with demand from rechargeable battery applications forecast to exceed 220kt LCE in 2020, representing roughly 70% of total lithium demand.

They continue:

Roskill’s longer term scenarios show strong growth for lithium demand over the coming decade; Roskill forecasts demand to exceed 1.0Mt LCE in 2027, with growth in excess of 18% per year to 2030.

The very long term chart of LIT ETF cleared previous all-time highs (set in 2011, around 48 points). LIT ETF now trades 20% above previous highs.

Let’s be clear, there is lots of power in this market. And this sector wants to move higher in 2021, that’s clear. This is the basis of our bullish lithium stocks forecast for 2021.

lithium ETF LIT

However buying all-time highs may be a good idea, but isn’t always a great idea.

We would prefer to buy the retracement. And the ideal entry price would present itself if and when LIT ETF retraces to its breakout level around 50 points, consolidates for a while, and prepares its next move higher. That’s what we will be watching to add a lithium stock to our Momentum Investing portfolio.

 

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.

 

  premium service trade alerts   premium service trade alerts   premium service crypto teaser  
Taki Tsaklanos

Taki Tsaklanos

Taki has +15 years of experience in global markets. His methodology is unique and effective, yet easy to understand; it is based on chart analysis combined with intermarket / fundamental / sentiment analysis. His work appeared on major financial outlets like FinancialSense, MarketWatch, ... Email: taki.tsaklanos@gmail.com. Twitter: twitter.com/investinghaven

  • Trending
  • Comments
  • Latest
silver prices

A Silver Price Forecast For 2021 *Silver 30 USD Underway*

January 2, 2021
gold price

A Gold Price Forecast For 2021 *Gold 2200 USD Underway*

January 2, 2021
dow jones

A Dow Jones Forecast For 2021 *New All Time Highs*

January 2, 2021
dow jones

Dow Jones Long Term Chart on 20 Years *10 Must See Charts*

October 26, 2020
technology stocks

In Hindsight Insights: Nasdaq’s Retracement In March Was Really Violent

0

Protected: [Emerging Markets/Gold/Silver] Heads up Template

0

Protected: [SPY] Heads up Template

0

Protected: [GOLD] Buy Alert Template

0
technology stocks

In Hindsight Insights: Nasdaq’s Retracement In March Was Really Violent

April 18, 2021
btc bitcoin

Bitcoin’s Brutal Decline Was A Test Of Its Rising Trend Channel … For Now

April 18, 2021
bear market

Gold: Will The Tactical Bear Win Or The Secular Bull Market?

April 18, 2021
euro

Leading Global Risk Indicator Trying To Turn Bullish In April

April 18, 2021

Connect with InvestingHaven

Receive top notch forecasts for free.

*We hate spam as you do.

Categories

  • Premium Services & Login
  • 2021 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026

Site Navigation

  • RSS Feed
  • About us
  • Sitemap
  • Privacy & Disclaimer
  • Terms of Service
  • Contact Us
Investing
Haven

Top notch forecasting with gold price forecast, many stock predictions, cryptocurrency charts. Many investing tips and crypto market analysis.

Copyright © 2021 Investing Haven

No Result
View All Result
  • Premium Services & Login
  • Premium Investing Service
  • Premium Trading Service
  • Premium Crypto Service
  • 2021 Forecasts
  • Markets & Stocks
  • Commodities & Gold
  • Crypto Markets
  • Mission 2026

Copyright © 2021 Investing Haven

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In