| Candlestick analysis provides a clear analysis of the difference between identifying the beginning of a very strong price move versus chasing a stock price.LTHM had moved up strong because of earnings well exceeding expectations. They earned $0.21 versus the expected $0.14.
Also, they projected very strong earnings into the future based upon the strong demand for lithium, the price advancing over 67% over the recent past. They projected there revenue moving up from the $540 million-$600 million range up to the $750 million range and as high as 800 million.
The candlestick chart patterns become the alert that new investor sentiment has come into a price trend. The RARE process merely allows an investor to investigate the news that provided the big price move. This combination allows the investor to make a much more accurate assessment as to whether this new breakout price move is going to continue or whether it was just a one-shot situation. LTHM can be bought on positive trading anticipating a 45° pattern. This also makes some of the other lithium mining companies bullish prospects. |
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