Updated LAC Analysis
Updated
LAC is continuing to hold its rising wedge pattern. It looks like sometime in the next 1-2 weeks it will break to the downside and probably touch the 25 DMA.
Options are limited for LAC, but I'll be purchasing OCT15 $22.5 Puts when the price starts to get crunched at the top of the wedge. I'm predicting around +125% profit on these options and my confidence level is high: any rising wedge pattern generally has a 2/3 chance of breaking downward, but the RSI and volume divergences along with the lithium price rally that has been the main reason behind this last month's price action cooling off all point toward a clear correction.
I guess we'll see.
Options are limited for LAC, but I'll be purchasing OCT15 $22.5 Puts when the price starts to get crunched at the top of the wedge. I'm predicting around +125% profit on these options and my confidence level is high: any rising wedge pattern generally has a 2/3 chance of breaking downward, but the RSI and volume divergences along with the lithium price rally that has been the main reason behind this last month's price action cooling off all point toward a clear correction.
I guess we'll see.
Comment
Broke the rising wedge early due to today's selloff, but the 25 dma seems to be offering support.
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