US Business Group: Some Critical Minerals 'Nearly Impossible' to Obtain from China

GOOGL shares fell 3.6% in the last close, with the RSI approaching oversold territory at 36.7, while the MACD remains negative below the signal line. The news headline points to supply chain risks as a U.S. business group states that critical minerals are nearly impossible to obtain from China. This could heighten concerns over cost increases and production disruptions for technology companies. In the short term, selling pressure is likely to persist, but the low RSI level may also trigger a potential rebound buying.

Although the headline suggests that the inability to source critical minerals from China could create supply shortages, lithium prices are technically already in a downtrend. The RSI is near oversold territory at 33, and while the MACD is below zero but above the signal line, momentum remains weak. The price is trading below both the 20-day and 50-day moving averages, indicating that short-term pressure may persist. The news could trigger a short-term recovery on supply concerns, but the current technical structure supports a bearish bias. Therefore, I assess this with moderate confidence in a bearish direction.

The news highlights dependence on China for critical minerals, increasing geopolitical risks for lithium producers such as ALB. Technical indicators are already weak: the price is below the 20- and 50-day moving averages, the RSI at 35.5 is near oversold territory, and the MACD is negative and below its signal line. A 5.3% decline in the last 24 hours indicates continued selling pressure. With negative news flow and technical weakness combined, the downtrend is expected to persist in the short term.

The news indicates that the inability to source critical minerals from China could create supply constraints for mining companies like RIO, introducing short-term uncertainty. Technical indicators already present a weak outlook: RSI at 37 is near oversold territory, MACD is below zero and, while above the signal line, momentum remains weak. The price is trading below the 20- and 50-day moving averages, with the last close down 1.27%. Therefore, the short-term downtrend is likely to continue, though a sharp decline is not expected due to the oversold condition.