LITHIUM STOCKS AND CHARTS

[TradingCharts]

Lithium Slump Has Room to Run as Bearish Bets Mount in Guangzhou
Guangzhou futures have more than halved since contract’s debut
Exchange looks to prevent short squeeze as January expires

The swift and brutal decline in lithium prices may still have room to run as bearish bets mount on the Chinese futures market that trades the battery metal.

Prices on the Guangzhou Futures Exchange have more than halved since the bourse debuted lithium trading in July as supply overwhelms demand. The market is now approaching its first contract expiry in January, and the number of trades that need to be settled via the physical delivery of the metal has exploded higher.

In one corner, traders with long positions — wagers that prices will rise — are debating whether to throw in the towel and sell. In the other, short-holders are tempted to add to their positions in the belief that prices will drop further. But the latter camp risk a classic short squeeze if they get their assumptions wrong and are forced to buy lithium in a rising market to close out their positions.

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https://www.bloomberg.com/news/articles/2023-11-30/china-s-new-lithium-exchange-hosts-battle-of-bulls-and-bears?srnd=undefined&leadSource=uverify%20wall