Well, I thought we got cheated today
We all had tickets for T20 match which we were also watching last few days, today seemed like a drawn out Test match.
Yes, the volume was comparatively low, around 8.6m shares, nearly half from other days. Our VWAP today was 59.2c and we finished at 58c, down 1.5c (2.5%).
ASX Li stocks had a very good day with few stocks making double digit gains. There were only few stocks in red, including us. This shows the macro LI is in a very strong bull run, all Li stocks will benefit from it and the sector seems to be at its best possible stage. This is translating to higher SPs of nearly all stocks.
Although we finished in negative territory, and would have loved to finish in 60s which I said yesterday, I was actually happy with today's results. The reason being:
- It is now evident that we cannot go on a straight line. We have made hefty gains since beginning of last week. We have raised the bar including our market cap. Further gains will require some hard yakka and good consolidation
- Lot of people have made spectacular gains and profit taking is an important aspect of trading now - As long as that is happening without denting the SP much, that is actually very good.
- Although we are making declines, our gains are more than our decline - that means we are marching forward. Eg on Monday we gained 23.91%, lost 7.89% on Tuesday. Then Wednesday we gained 13.33% and today lost 2.52%. So it is very evident from these figures that we are still in strong bull run - Big gains - Small declines . One comparison with another stocks which is making big gains is GL1. If you look at their trend it is similar - good gains are followed by small declines. So I feel that is very healthy and normal
- Our VWAP again today was over 59c - that is 3 days in a row we have had above 59c. That means we are being primed for the next phase once this consolidation is over.
- We finished at 58c, lower than our VWAP of 59.2c. Last time it happened, we did good gains. Hopefully we follow the same trend.
What next - Subject to ASX and Li macro behaving, I feel we will be on our forward journey tomorrow. There have been 4days of consolidation at this level, and I feel majority who want to exit at this stage may have done. In a steady period of normal volumes, I have seen consolidation happening usually 4-6 weeks. But last few days we have been doing around 6 to 7 times normal volume for ESS. So each day for me in steady times equates to a week of this very high volume. I would love to finish in the 60s tomorrow and also move towards 68c. This was the first day after a long time that we did not do a new highest price ATH - we have been consistent for quite sometime. Yesterday we did our ATH of 64.5c but only reached 63.5c today. The big buyers had an off day or they were busy with some other clients as we could see other ASX Li stocks. Lets hope they are back with us and we repeat what we have been doing. All the best and please dyor.
