Hedge Funds Increase Bets Against US-Backed Critical Mineral Companies

Hedge funds have increased their bearish bets against critical mineral companies, which could create additional selling pressure on lithium prices. Technical indicators also point to weakness: the RSI is at 40, and the MACD is in negative territory below the signal line. The price is trading below both the 20-day and 50-day moving averages. In the short term, the downtrend is likely to continue, but since the market has not yet entered oversold territory, the decline is not expected to accelerate.

Hedge funds have increased their bearish positions against US-backed critical mineral companies, which could be interpreted as a negative signal for firms operating in this sector, such as ALB. Technical indicators support this view: the RSI is in weak territory at 44, the MACD is below its signal line, and the price is trading below both its 20-day and 50-day moving averages. The 1.7% decline over the past 24 hours indicates continued selling pressure. While a short-term downward move is likely, the decline may be limited in pace as the stock has not yet entered oversold territory.

FMC shares have lost 13% in the last 24 hours, with the RSI declining to 22, entering oversold territory. The MACD line is below the signal line and in negative territory, indicating weak short-term momentum. The price is trading below both the 20-day and 50-day moving averages, confirming a bearish trend. Increased short positions by hedge funds against critical mineral companies reflect a negative sector outlook and may amplify selling pressure. While a short-term recovery is unlikely, the oversold conditions could limit the pace of further declines.