Battery Metals: Booming Business, Say The Charts

lithium mining stocks

While most market segments have been hit by unusual volatility, turning any bullish action into doubtful movement, there is one sector that has the look of a booming business. At a time when most stock and sector charts look very choppy, there are two charts that instead look amazing: the lithium price chart and the battery metals sector chart.

We will show in this article how the lithium price and green battery metals stocks are both wildly bullish, but in very different ways.

All COVID-19 momentum stocks are back to ground zero, signaling the end of the big pandemic momentum cycle in markets. However, there is one trend that is only now taking off: battery metals.

As explained in The Hottest Commodity Of This Decade, The Only One Still Near All-Time-High:

"The lithium space had a major divergence between the price of its leading indicator (lithium price) and the miners. This divergence did not last for long. We would argue that there still is a divergence, but it’s in the process of disappearing.

"Most, if not all, of our lithium stocks selection look really good as they confirm a long-term basing pattern, setting the stage for a continued rally in the next 18 months. In our latest Momentum Investing shortlist, we featured several lithium stocks that will be really well in the next 18 months!"

We confirmed the following in our post, Lithium Outlook 2022 And Sector Darling Lithium Americas:

"Lithium related stocks remain bullish in the long-term, and therefore our lithium price forecast for 2022 is still on track. The main risk we see for the sector is the social and environmental impact (pollution, water depletion, chemicals used in the process, etc.). On the other hand, we believe that the extraction and treatment processes will hopefully become more environmentally friendly as the sector matures."

The lithium price chart, as shown below, is the only commodity trading at all-time highs.

There are many ETFs out there (such as LIT) in the space, mostly covering large-caps like SQM and ALB. However, we prefer to focus on the BATT ETF as it exhibits the most relevant companies in our view.

The BATT ETF has a tremendously bullish setup. In fact, it is one of the few sector charts that we like a lot, currently. It is one of the few sector charts that has seen such a bullish reversal in 2022.

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Harry Sinclair 1 year ago Member's comment

🧐🫤 BATT doesn’t have a bullish setup in any sense that i see but 🤷🏻‍♂️ never know