Chart of the Week

The ASX lithium stocks bounced last week as investors looked for bargains after the significant sector weakness since August, e.g. Pilbara (PLS) bounced 20%, although it’s still over 30% below its August high. The core issue remains the underlying lithium price, which hasn’t yet shown any signs of reversing its entrenched downtrend; hence, we would only be buyers of dips instead of chasers of strength.

• We believe lithium stocks can be bought into dips, e.g. PLS back around $3.50.