Close 56.67
Sociedad Química y Minera de Chile is the world’s largest lithium producer and a supplier of plant nutrients, iodine, lithium and industrial chemicals.
We are fully into the battery era; the Battery Agenda has been set from the US government, from Apple Car to Tesla and traditional auto companies, and there are only a handful of significant lithium mining locations on Earth.
After exploding in early January on huge volume, SQM pulled back but as it tried to break the 50 DMA (blue line), it tried to hit the 65 Day Moving Average (red line) but volume came in. Despite the stock being down again that day, I think that was an accumulation day. The subsequent response confirms that. Friday, the stock again poked its head above the early January closing level on strong volume.
Fundamentally, this could be big and in its early days.
As always, the price trend and its relative strength vs. the S&P500 will tell us what’s next, but odds seem to favor this name, with the big psychological level of $50 acting as support.