Piedmont Lithium continuation of Bullish DivergenceHey Folks!
This is an update to my Head and Shoulders bullish divergence idea.
You can see the double bottom Stochastic RSI and continued price increase. Granted it's not the most bullish divergence, but the H&S pattern at this moment, is more likely to play out than not imo. It's not unusual for price to stray only to come back into the fold in a H&S.
10 avg volume has increased slightly after today.
I don't pay much attention to analyst price forecasts, but in this case the targets are worth looking into and make technical sense to me. In fact I think they are modest.
I'm looking for a 100% return if Piedmont can get their mining permits approved by North Carolina. If approved, PLL would become one of North America's largest sources of lithium for electric vehicle batteries for Tesla and others.
This permit approval also adds an extra measure of risk to keep in mind. Also, there is a bearish case of a gap fill at $11.70 and there is a lot of liquidity in the mid 20's. I think this would be the result of a fundamental upset with the permit.
Price broke March 31 resistance at $60.94 and looks to be retesting that zone. I will update this idea accordingly.
Not financial advice.
Happy Trading!
OnePath
