Yesterday I asked if we are ready for the move? Today we got a resounding Yes
Yes, MLS gained a whopping 24c to finish on 11.5c. Our volume was very good, around 38m shares traded. Volume was similar to Monday where we began our journey of rise when we moved from 8.5c to 9.1c.
ASX Li stocks are also on the move. Of the 31 stocks I track, average increase was around 6%. Fifth consecutive day of increase. If yesterday's increase of 3.5% was decent, today's rise of 6% is good.
The trading today was spectacular. What was good that it did not just run away to 11.5c. There was lot of churn which happened around 10c. So it let a lot of sellers who were happy to go at that level in a decent way. Because of that churn we were then quickly able to move to 11.5c. A lot of us have been calling out how badly the sp reflects our potential. We are still much below where we should be. I wouldn't be surprised if bargain hunters will come in groves and take a position.
One number to watch is 13c. It had acted as support in our previous trading range of 13 to 17c. So may act as a small resistance. But once that is overcome, we should get into the next trading range of 13 to 17c and reach high parts of that.
There are some results due soon. This rise gives a good feeling about those results - nothing guaranteed, but certainly bodes well.
What next -
US Li stocks did well overnight. Most importantly, the US markets did pretty well and S&P 500 gained just over 2%. ASX followed the trend with over 1% increase as well. The ETF in US markets, LIT, also had a decent increase of around 5.5%. How closely it mirrors the 6% increase in 31 stocks I track.
So dow behaved yesterday, what will it do tonight? There is a chance of red. As long as its not a big red, markets will take it positively. If slight red, we might not get a big increase tomorrow, but chances are we would still keep gains from today, if not inch slightly higher.
That is over for overall Li sector. But we are on a move, driven by some forces. Its clear there are some big traders with us now, and my experience says that they can take us much higher irrespective of market - though if the market is good, their job is also easier.
But dow/asx have fallen a lot in recent times. We are coming of the back of 6 to 7 weeks of decline. So if sentiment is not very bad, the markets should continue to inch forward as it has to make up lot of ground. Lets hope it stays that way. All the best.
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