SQM head and shoulders daily TFClear head and shoulders pattern with a break of the neckline and fallen below the cloud with a measured move target of $30
S2CH34 trade ideas
Mining Momentum Powering UpSociedad Química y Minera de Chile is gaining bullish momentum, with a gap forming around the $36.00 level. A breakout above the $44.00 resistance would signal continued strength, positioning the stock to target the $60.22 weekly resistance. With a favorable risk-to-reward ratio, this trade offers an attractive opportunity, while risk is managed with a stop-loss at $34.94.
As a global leader in lithium production, SQM is poised to benefit from the growing demand for EVs and energy storage solutions. Additionally, the potential for lower interest rates could serve as a positive macroeconomic driver, reducing borrowing costs and supporting investment in high-growth sectors like lithium mining and green energy.
This combination of technical momentum, favorable market trends, and macroeconomic tailwinds makes SQM an appealing play, with $60.22 as a realistic near-term target.
NYSE:SQM
SQM Sociedad Química y Minera de Chile Options Ahead of EarningsAnalyzing the options chain and the chart patterns of NU Holdings prior to the earnings report this week,
I would consider purchasing the 70usd strike price Calls with
an expiration date of 2023-8-18,
for a premium of approximately $1.05.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
Looking forward to read your opinion about it.
Watchlist 2023-04-24 $SPY $LYFT $FRC $VERU $NWG $SQMAMEX:SPY - gapping up slightly back to the high volume node between 411 and 412. We’ve seen this price zone act as a magnet for the previous week. Until this area starts tot act as R or S, assume that the weekly downward trend will remain in this tight range.
For further confirmation of a trend day, watch for:
USI:ADD pinned near +\-2000
USI:VOLD ratio over +/- 3
USI:TICK cumulating past 0 wicking to +/-900
NASDAQ:LYFT - showing signs of strength at PM RVOL of 2.3. knowing on the door of 10.50, at 9/10 technical level IMO. PD was a fadeout below on 3+ RVOL. This is a trade to buy through 10.50 off the open IF it makes a move through immediately or there first move is down but it is bough up very quickly. THEN if needs to hold above 10.50 without a rejection. Want to see the bid hold and price move quickly away for the 10.50 level. If all these factors align, target could be as high as 11.50 which would be a 2 ATR move.
NYSE:FRC - to report earnings after the bell. Since it's the results are still speculation, anticipation of sustained momentum in one direction might be capped so it's important to buy /sell closest to where you are wrong. If I see FRC trading over the 14.85 range, I want to get in around 14.50 to not be run over if it's a failed breakout. Playing it safe on this name today.
NASDAQ:VERU - Sells Entadfi Business for HKEX:20 Million Plus Up to HKEX:80 Million From Sales Milestones - news from 2 days ago. Continuation strength play, buying on dips into high volume nodes that align with support at 1.40 and 1.30.
Other watches:
NYSE:SQM - huge move PD as chile plans to nationalize lithium reserves. Bad news for SQM. Watching for weakness under 63.50 or strength over 66.
NYSE:NWG - Watching for weakens under 6.80.
BEST SHORT Opportunity in the markets!! SQM SHORT!!This chart is up against ATH and MAJOR Overhead Resistance lines extending back to 1996. This stock has been overbought for quite some time and has continued to move higher while markets have traded generally lower. I fully expect this one to play catch up soon.
Notice the large Yellow Parallel Trend Channel that price broke out of in March 2022. Price has gone nearly Parabolic since then and is losing steam as it hits overhead resistance. Although not shown here the Price is outside of the Bollinger Bands for >5 MONTHS now indicating that price is > 2 STD away from the mean average MONTHLY Price. This is a Reversion to the MEAN counter trend trade with the 1st Target Price the broken Resistance now acting as support. 2nd Target Price would be the Monthly EMA 39.
SHORT Entry = $112.46. SL is confirmation close > $116.78. Target # 1 = $77.64. Target # 2 = $60.43. This is a 8.5:1 Reward:Risk ratio to the 1st Target. Even greater to the 2nd Target.
Trade has a >85% Probability of turning out EXACTLY as described!! See my prior posts on similar setups in AMD and SPX.
Lithium Stocks Could Be Moving AgainLithium producers have outperformed this year thanks to the widening use of electric vehicles. With the metal’s price continuing to advance, today’s charts highlight several names in the group. We’ll start with Sociedad Quimica y Minera.
The Chilean stock has consolidated since the spring while making incrementally higher lows. A falling trendline formed along the highs of September and October, which SQM just broke. Also notice how prices fought back above the 50-day simple moving average (SMA).
Similar patterns have occurred in other names. Albemarle, for example, made a higher low in October versus July. It dropped on November 3 after revenue missed, but clawed back to close in the green. ALB proceeded to break its own 50-day SMA and trendline before hitting a new record high on Tuesday:
Livent is also pushing against a trendline:
Lithium Americas and Piedmont Lithium , which have smaller market caps, have also made higher lows and are fighting trendlines. However they remain further from their all-time highs.
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SQM: Chilean Lithium Stock Nears Triple DigitsSociedad Quimica y Minera is a Chilean fertilizer company reinventing itself as a lithium provider. Today we’re looking at some potentially bullish patterns as it squeezes back toward triple digits.
First are the pair of strong earnings reports on March 2 and May 19. The initial headline lifted SQM above its previous all-time high from July 2011. The second one helped propel the stock past $100, where it stalled and pulled back in June.
However it didn’t pull back much. Price stabilized near the 100-day simple moving average (SMA) in mid-July and returned above $99. It then took a small breather, which was quickly met with buyers stepping in to defend the 50-day SMA.
Next you have the trendline along the May peak and the recent highs. SQM is currently challenging that resistance.
Finally, the 8-day exponential moving average (EMA) has remained above the 21-day EMA since late July. That, plus the rising MACD, may suggest the shorter-term trend is turning more bullish.
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TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. You Can Trade, Inc. is also a wholly owned subsidiary of TradeStation Group, Inc., operating under its own brand and trademarks. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com .
SQM - Another "Inflation Hedge" Thats ToppedSo I just met (online not IRL) someone whilst playing chess who's username is WallStBets and we had a chat about trades and his pick was the supposed inflation hedge Lithium and recommended SQM.
I looked them up and they are apparently the world’s biggest lithium producer.
So looking on 2M chart SQM appears to have had an enormous blow off top relative to the trend. It has popped up way above the upper bollinger band and printed a huge star candle showing selling pressure coming in.
RSI overbought and will probably at least get back to the bottom quadrant before any more action.
So it looks like a major top.
Interestingly with SPX overlaid the last time SQM pumped like this was during the 2008 crash and I dont know why that is but it looks like a cheeky little multiplier for those in the know.
Anyhow - who knows maybe it is the inflation hedge and will carry on up as it did before but with GOLD SILVER PLATINUM NICKEL COPPER all looking very bearish currently, its not a market I want to be in, at least not right now.
After a significant top like this it should at least get back to log 0.382 which is $53 even if the trend continues.
But if we look at the previous time this happened in 2008 it then suffered a 100% retracement - complete collapse. I'm not saying it will but if it happened again it would crash to $16.
Not advice.
... Can see you are following @Wal1stbets . Hope you like the chart and we are now chess friends 😄. Feel free to come say hi.
