Very tentative start to 2025?.
WC8 had a sedate start to 2025. It had a drop this week, fell from 28 to finish on 25.5 this week. Volume usual.
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So what is happening in Li sector/stocks? After a tough last few years, 2025 has started very cautiously. No fireworks yet, but no capitulation as well. Ganfeng is around flat for the week, slightly down, ALB too flat, slightly down. PLS finished flat for the week as well. No major indication yet in which direction Li stocks want to go.
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WC8 is playing in the 20s now for nearly 2 months. No strong direction. Punters waiting. Maybe for Li macro. Maybe some news for WC8 - finance, offtake, anything, any positive news will do. Otherwise it just plays macro. It looked a bit strong last week, got to 29, but this week slowly falling under the pressure of Li macro, rather than carving its own path. WC8 is hot and cold stock. So it may be all right to hold this level, because if things turn, it could have a big break. Downside needs to hold 20, but has a big buffer now, will not go there in a hurry, lot of small resistance that may hold. Upside, has to get to 30s, otherwise will get pushed down, most of the time, without news.
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So what will signify a positive play? ALB should regain 92/94. It reached there this week but could not hold. Ganfeng 37/38. Till these two don't happen, odds of going lower is slightly higher than going up. That's my reading based on previous plays, but I could be wrong, so please dyor.
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So what may happen next week? Very uncertain. Chinese stocks did a slightly higher slide this Friday afternoon. But this is not the first time. A lot of Friday's in NovDec, it was doing the same. Dropping decent on second half of Friday. It has continued 2025 by carrying its bad habit. So US markets, and ALB has a work cut out tonight. General markets also slightly iffy. It needs to hold 5/10% drop from its high. It is holding for now. ALB needs to hold this level so that its in striking distance of 92/94, otherwise it could drop below 80 first before regaining. It has gone near 85 few times in last week or two, but has held. Another test coming up tonight. I feel if ALB holds the 85 level, it will still be all right, around 88 hopeful, anything green, we could see Chinese markets coming back on a big green on Monday. Will that happen? Lets hope so. Enjoy your weekend and all the best.
(20min delay)