Pilbara Minerals is a lithium producer with a market cap of almost $8 billion. Their main operations are in Western Australia.
“Their recent quarterly results were impressive with solid pricing being achieved on sales and costs being lower than expected,” Michael said.
“Lithium stocks have been riding a wave of positive sentiment, but have fallen back in the past several weeks.
“The recent decline in PLS saw it move back towards a major level of support that exists between about $2.40 and $2.60.
“Last week it bounced off that level on good volumes.
“We now have a potential “triple bottom” in the stock (arrows).
“This is therefore the zone to buy PLS, and we expect a recovery back up towards the top of the range in the high $3’s before needing to reassess.
“A failure under $2.40, however, would be a negative and that would have us targeting $2 as the next support level,” Michael said.
Pilbara Minerals Limited (PLS)
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