AZL Daily Report, page-617

Consolidation or something to worry?

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Yes AZL finished flat for the week at 1.6. Very low volume, I think lowest in the year on a weekly basis, today only 700k, maybe lowest for the year.

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So what is happening? Chinese markets were closed this week. So we practically didn't get much direction. So most Li stocks stayed in consolidation zone. A few percent on the down side, on average. ALB didn't have its mates Ganfeng, Tianqi, etc. So did not know what to do. Usually there are 2 forces, Chinese and the rest, and they complement each other. So that play didn't happen. It was more or less a waiting game, mainly trying to hold the level. So we wait, possibly for Monday.

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AZL too playing the macro. Holding the level. Waiting for directions. There were none this week.

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Personally no trades for me in AZL, but have been playing a lot of Li stocks, rotating, trying to sell a portion and buy back to reduce my average. It has worked, but we are talking small percentage, 5 to 10% swing. Though not big, but does help. It carries some risk, but I do with a portion only. Somehow this week was all right, as after first day when ALB reached 98 and came back, I had a feeling, we may consolidate, drift small down and wait for next week. It played out that way. Although I am thinking consolidation, last 2 years has been brutal, so please check your risk reward and dyor. I am comfortable till now, but that could change. I try to follow price action.

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So what may happen next week? ALB is down 2%for the week, but ETF of LIT is up 2%. So narrow range, holding pattern. Many Li stocks had big gains last week, double digit gains, so may not be bad from that perspective. There has been attempts to push ALB down, but it has held till now. All 4 days it finished in the 94s, which is roughly 30%up from its lows. It has to hold tonight as well. There is a chance many may interpret this week play as weakness, it's possible, but there is no confirmation, yet. No big sell offs. So looks like consolidation, but let's see. The main play is on Monday. Ganfeng last 2 days, 10% gain each day. Will it continue the rise, or consolidate. Or drop big. We don't know. We wait. And hope to have a positive next week. Enjoy your weekend and all the best.