Lithium ETF (LIT) should be ready for a rally

The Global X Lithium & Battery Tech ETF (LIT) invests in the full lithium cycle, from mining and refining the metal, through battery production. The Global X Lithium & Battery Tech ETF (LIT) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index.

LIT weekly chart October 2022 

Lithium ETF (LIT) ended a bullish cycle in November 2021, and we call it wave (I). Wave I ended at 41.19 and we had a 3 waves correction to end wave II at 17.82. Then in March 2020, we saw a strong bounce toward 74.95 to complete wave III and a pullback as wave IV ending at 55.00. The latest rally made new 5 waves to finish at 97.26 and complete wave V and wave (I). From this point the downward movement started, and it seems that it should complete a double correction before continuing with a rally. We can clearly see 3 swings down to complete wave w at 61.50. Then the x-connector ended at 82.15 and continue lower. Finishing the wave x, we called LIT could build a double correction structure as we can see in the chart.

LIT weekly chart November 2023 

One year later, we can see LIT made 3 swings lower as expected ending wave ((W)) at 57.56. This drop confirmed a bearish sequences breaking 61.50  low of w in red. The bounce completed wave ((X)) at 72.77 and continued with the downtrend. From here, the market made another 3 swings more lower building the double correction structure ((W)), ((X)) and ((Y)). The ETF needs one more low to reach 46.61 – 24.62 blue box area missed by 5 cents. Also this should end red wxy correction and wave (II) where it should rally to start a new uptrend.

LIT weekly chart November (alternative path)