$Pilbara Minerals Ltd (PLS.AU)$ stock jumped 5.35% on Friday, with trading volume expanding to A$69.52 million. Pilbara has risen 10.07% in the past week, with a cumulative loss of 19.75% year-to-date.

Pilbara's technical analysis chart:

Technical Analysis:

Support: A$2.86

Resistance: A$3.72

Price range A$2.86 to A$3.72: The trading range indicates a heavy concentration of buy orders, with the stock price on an upward trend and strong upward momentum. The trading range suggests a sparse distribution of locked-in positions, leading to reduced resistance to upward price movement. The stock price bounced back after finding support near A$2.86. It repeatedly touched around A$3.72, establishing a level of resistance that impedes further upward movement. There are also some trapped positions around A$3.72, and it is necessary to observe whether the resistance level near A$3.72 can be effectively broken through.

Market News :

Pilbara released its FY2024 results at the end of August, with a 69% decline in revenue to A$1.254 billion. This decrease was primarily attributed to the downward trend in lithium prices. During the reporting period, the company's average estimated realized price for spodumene concentrate dropped by 74% to A$1,762 per dry metric tonne (CIF China) on a ~SC5.3 basis. As for profit, Pilbara's EBITDA of A$538 million was 84% lower than the same period last year, mainly due to lower realized prices. However, lower total costs and higher sales volumes partially offset this decline. The EBITDA margin remained strong at 43% for the period. The underlying profit after tax and statutory profit after tax also experienced significant decreases of 86% and 89% respectively.

Previously, the reduction in supply from CATL was expected to drive up the price of lithium mines, leading to a rebound in stock prices. Recently, Australian mining stocks are likely to benefit from China's economic stimulus measures, with shares continuing to rise.

Overall Analysis:

Fundamentally, focus on the company's performance and operational status, as well as the fluctuations in lithium ore prices. Technically, pay attention to whether the support levels hold and if the resistance levels can be effectively breached.

In this scenario, investors should adopt a cautious strategy, setting stop-loss points to manage risk and maintaining ongoing vigilance regarding company developments and market conditions.

Source: Pilbara, Bloomberg