How to trade mania on electric vehicles

The future of electric vehicles has led investors to see lithium as a very hot deal. At the moment both governments and manufacturers have taken steps to electrify the automotive sector. And for no one is no secret that lithium is vital for lithium-ion batteries.

One of the options is to buy a fund that tracks a basket of lithium products. Such a fund, for example, is the Global X Lithium Equity ETF. The ETF is affordable even for small investors, currently traded at around $38.27, and is on a high upward trend. The price has corrected, with the dropping volume at the last ascending momentum indicating a possible re-adjustment. It is then that the levels around $36.00 will be suitable for a new Long with Trend. On the main chart you can track the development of the fund and the appropriate entry levels.

Another option that is increasingly being discussed is the trading of futures on the metal. These tools enable traders to agree to buy or sell at a certain price in the future. This option will be available soon, and is expected to further raise the price of the metal and hence ETFs related to the industry.

However, this trend will be difficult. Skeptics believe that the profitability of these cars is at the hands of car manufacturers. If the car business with ICE can increase vehicle profitability, it will inevitably have a negative impact on lithium and is a major problem for the strong growth of the metal.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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