Ganfeng Lithium Co.

What is Ganfeng Lithium Co. (002460)?

Ganfeng Lithium Co. operates through three segments: Lithium Metal and Compound, Lithium Battery, and Lithium Ore Resource and Others. It offers battery-grade lithium carbonate, battery-grade lithium hydroxide, lithium chloride, butyl lithium, and lithium fluoride; lithium metals in the form of ingots, foils, rods, particles, alloy powder; polymer lithium battery; and lithium-ion motive power batteries, energy storage batteries, and consumer batteries, as well as copper lithium or lithium aluminum alloy foil.

Is Ganfeng Lithium Co. (002460) a good pick?

Being a company directly related to the extraction and management of lithium in the long term there is a lot to grow taking into account the relevance of lithium in the automotive market, where every day we can see that the trend points to cars being fully electric in the future and this directly benefits this sector as electric cars need lithium batteries and Ganfeng Lithium Co. could take benefits from this.

Technical analysis

From November 30, 2021, to January 21, 2022, the share price decreased -30%, due to primarily concerns over omicron and rising covid cases. Then 002460 recovered 19% after Ganfeng Lithium projects higher earnings through 2021. From January 26, 2022, to February 08, 2022, the share price fell -14% and today the share price recovered 24% to 151.88 CNY.

According to current technical indicators, the share price could increase 5% to 159.83 CNY touching 0.382 resistance but we need to consider the Death Cross, it could send the stock down 10% but if it respects the trend the share price could increase by 13% instead of 5%.