SQM: Chilean Lithium Stock Nears Triple Digits
Sociedad 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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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.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
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: https://www.tradestation.com/important-information.
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