Last week, the Pilbara Minerals (PLS) trade was closed when the $2.15 Stop loss level was reached.
Lithium’s price has remained elevated, but a report from the global investment bank Goldman Sachs predicting the Lithium price will fall over 60% within the next two years sent investors heading for the exit and saw a sharp fall in the PLS share price.
We can’t be dogmatic in our views and need to be nimble if sentiment changes. This is not to say that Goldman Sachs is correct in their proposition (that lithium prices have topped out and the price will fall 60% in 2 years). For now, it doesn’t matter who is right or wrong, price and volume are the only facts, and opinions don’t mean a thing. To save us financial capital, we will continue to heed this advice.
Closed position result
Number of shares: 2,000
Entry Price: $2.67
Exit Price: $2.15
Loss: $1,060
Please ensure that you automatically exit at the stop-loss levels that was advised throughout the trade as a timely exit is vital to capital protection.