Originally posted by anf0
We closed at a 3 year low yesterday, and declines overseas accelerated. This, to me, only spells one thing. It’s time for rapid capitulation. I’d bet Max’s wedge/channel gets busted to the downside next week toward 20 cents.
This isn’t limited to MNS though. The price action across all graph/lith/battery related stocks is absolutely horrid. PLS, KDR, SYR, AGY all in fire sale mode. It’s going to get ugly.
Also I brought this up last time oil was in bear market. Oil is down 40% since October, this is a massive hindrance to the battery revolution. You’ll notice all the massive runs in lith stocks like PLS, KDR, AGY etc happened when oil rapidly rallied from $26/barrel to $75. Now as we make our way back down (currently $45), it reduces demand for emerging clean tech.
You have a good point on the oil price, but this point seems limited to the US. Europe and China are dependent on foreign fossil fuels and this is part of the reason they're pushing ahead with EV's on such a large scale. I believe EV's will happen in China and Europe regardless of what the oil price is doing.
As for Magnis, their new multi-year low seems to be an indication of what the market thinks about their future, and current MC. It is still $160m with only $8.5m of that backed by cash (last quarter).
The 3 year downtrend looks set to continue.