During Thursday's Mad Money program one caller during the Lightning Round segment asked Jim Cramer about Piedmont Lithium (PLL) . "This is a great long-term speculative position, although it's very dangerous," replied Cramer.
Let's check out the charts and indicators of this emerging lithium chemicals company focused on "the development of its 100%-owned Piedmont Lithium Project in North Carolina." If electric vehicles (EV) are key to our future this could be one company to keep an eye on.
In the daily bar chart of PLL, below, we can see that the shares have made a huge swing recently and the chart tells us more when a log scale is used instead of an arithmetic scaling. PLL traded sideways to lower until early September when traders/investors may have gotten a hint that the company was going to strike a deal with Tesla (TSLA) .
Notice the huge price gap and the surge in trading volume. The moving averages turned positive but they are so far away from the price action they are not really useful.
The On-Balance-Volume (OBV) line shows some slight pickup in July before the news and interestingly the line sinks sharply as early buyers appear to have taken profits. The Moving Average Convergence Divergence (MACD) oscillator is bullish.