Global X Lithium & Battery ETF

18 September 2017

Technical Summary: The 5 year chart of LIT shows that the ETF was in a down trend that bottomed at about $17 per share in the middle of 2016. Since that time the ETF has been on a consistent uptrend and now trades above $37 per share. This is reflected on the 1 year chart which can now be viewed as overextended from its most recent buy point. Investors should note that this move has coincided with significant extra volume coming into the stock. This can only be considered as bullish as it suggests institutional demand and provides investors with increased liquidity. The ETF has provided investors with three opportunites in the last year with low risk entry points. However, investors buying now are buying a stock that is overextended. This provides two options, either they can wait for a consolidation or a pull back for the stock to setup again. The other alternative is that investors may consider averaging into the position to minimise risk.

The stock has provided a series of buypoints over the last year but could not be overextended from its base

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