Technicals | Jul 24 2025
The Chartist's attention is back on lithium, through an ETF, with expectations building the renewed rally might not stop until a fresh all-time high is in place.
By The Chartist
Bottom Line
23/7:
Daily Trend: Up
Weekly Trend: Up
Monthly Trend: Up
Support Levels: $84.00 / $75.00-$74.00 (zone)
Resistance Levels: $107.45 (all-time highs)
Technical Discussion
Reasons to be tentatively bullish:
-A key resource required in the emerging technology and EV sector
-Limited producers globally yet growing
-Europe, China, and the U.S are seen as major consumers moving forward
-Bullish Elliott Wave count (longer term) remains in play with all time highs now in sight
Overall, lithium demand is forecast to grow 12% annually through to 2030, underpinned by EV adoption, renewable integration, and digitalization. While China currently accounts for 60% of global demand, that dominance is expected to wane as other regions scale up.
The long-term fundamentals remain intact, and it’s hard to envision a future where lithium isn’t central to the global economy. It was certainly a bumpy road during the first few months of 2025 yet from early April the ACDC ETF price chart started to see price action catching a solid a bid and this has continued post a 4-6 week breather with July price action proving to be as strong as it gets. Lets check in on the technicals.
Nothing has changed with our EW labelling and positioning of trend from our last review. The expected higher degree Wave-(C) move north we stated should unfold as a 5-wave intermediate pattern to the upside and the start of that does look to be unfolding now.
The initial wave-(i) and wave-(ii) did everything we asked of them especially in relation to the wave-(ii) breather not breaking back below the 200 Day MA with buyers coming in every time price tested this dynamic support line for new found strength.
What we also liked about the wave-(ii) was the way it formed as a descending triangle. Mainly due to the fact that these patterns do present to us excellent low risk trading opportunities which is exactly what ended up transpiring here.
We gained further confidence in our analysis as well when price action broke out north from this pattern and even more so via the conviction that it did this. A wave-(iii) was the expectation yet for us to be convinced that this wave was actually in play, we needed to see the move be strong and impulsive and as you can see on our chart and in our video tonight, this is exactly how things have unfolded.
Wave-(iii)’s are also generally the most powerful in any 5-wave sequence and often come with some breakaway gaps along along the way which is what has occurred here as well. Anything can happen in the markets of course, yet this one is following our bullish Elliott Wave script very nicely for now!
Trading Strategy
Our trade recommendation triggered in-between reviews at $88.96. And with the exceptional upside momentum that is now in play, we have tonight moved our stop higher into some small profits circa $89.98.
It’s looking good for now so respect the new stop position and lets see how high this immediate wave cycle can travel over the coming days/weeks.
Re-published with permission of the publisher. www.thechartist.com.au All copyright remains with the publisher. The above views expressed are not by association FNArena’s (see our disclaimer).
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