Most associate lithium with EV usage.

The largest holding in the ETF basket (LIT) is Albemarle Corp. (ALB). The U.S.-based company is not purely a lithium business as they also produce chemicals related to petroleum refining and consumer electronics.

Interestingly, Tesla (TSLA) is a holding in LIT as well as ALB, only with about ½ the percentage of weight.

Factoid: Lithium the drug, is made from lithium the metal.

Besides the use for EVs, lithium-ion batteries are the key to rechargeable power for laptops, phones, and other digital devices.

Expectations for longer-term demand supports a rebound as government incentives to switch to EVs.

Some forecast that lithium demand by 2040 will be 16 times higher than present-day levels.

Is LIT a buy?

On the daily chart, the 200-DMA is above the 50-DMA and the price is in between. That is a recuperation phase or one of hope.

The slopes on both MAs are slightly negative but not by too much.

I particularly like the risk right now. The low of the day LIT cleared the 50-DMA or 60.90, should hold.

On the Real Motion Indicator, there is a bullish divergence.

The momentum is above the 200-DMA while the price is still quite far. That is typically bullish for the instrument.

Tuesday, May 16^th LIT is having an inside trading day or trading within the range of Monday. That means pause or uncertainty.

We will be looking for a weekly close around or just above current price levels as patience is the key in current conditions.

ETF Summary

S&P 500 (SPY) 23-month MA 420 Support 410 then 405

Russell 2000 (IWM) 170 support - 180 resistance

Dow (DIA) 328 big support to hold

Nasdaq (QQQ) 329 the 23-month MA and big caps trying hard

Regional banks (KRE) 42 now pivotal resistance-holding last Thurs low

Semiconductors (SMH) 23-month MA at 124-can it hold next 2 weeks?

Transportation (IYT) 202-240 biggest range to watch

Biotechnology (IBB) 121-135 range to watch from monthly charts

Retail (XRT) 56-75 trading range to break one way or another

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