Pilbara Minerals: PLS is not the sort of stock I'm interested...

Pilbara Minerals:

PLS is not the sort of stock I'm interested in, however I happened to look at the chart as an exercise and found some interesting features. @CaptainGrumpy I've noticed that you've traded it.

Weekly Chart: The overall move is a normal exponential run. However have a look at the retracements on the Weekly. The four main pullbacks has been to 50% and reversed. I guess you have to be a technical analyst to get excited by that, but it shows its a really strong reversal point that's tradeable. Normally these sorts of pullbacks would be 61.8% and 32.8% and occassionally 50%. But every pullback to 50% I haven't seen before.

It suggests this week bar which fell through 50% and reversed back up is a turning point.



Monthly Chart: The monthly chart also shows quite some symmetry. Look at how those two spikes in Orange both run up past 162% extensions.

I'd suggest this chart is an Elliott Wave type move, even if not textbook. A reversal here should run it up into a Wave B. That is, the peak is in at $0.87, but we'll now run back up in a form of bear rally and then fall over.

Normally Wave B will go to the 78.6% level at $0.79 and fewer times to the 50% retracement level at $0.69, However, given that 50% resonates so well on this stock, I wonder if the $0.69 will be the next peak.

I've marked the likely target zone anyway in pink for this next move.

Caution that I don't know anything about the stock other than looking at the chart this morning in isolation. I'm not trading it, just being an analyst.