Have we made our lows?.
From a weekly perspective, a slight gain for the week for WC8. Moved from 25.5 to 26. Slightly small gain than average of other Li stocks this week.
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So what is happening in Li sector/stocks? Last week I had shown the figures where most stocks across Chinese/US/ASX had finished flat. I had also written that ALB needs to hold the 85 level, for no further declines, and Ganfeng to hold their last week level. I had also written that for any positivity, and signs of sector coming back, ALB has to reach 92/94 level, and Ganfeng 37/38 level. So what happened this week? ALB has obliged. Currently at 94, even finished 95 day before. Ganfeng at 35.54, reached 36.39 intra-day, so getting there. Not nearly there, but a very good week. Both ALB and Ganfeng made around 8% for the week. PLS too made 8% for the week. So this is second week in a row the Chinese/US/ASX are playing exactly same in the sector. Last week flat. This week positive 8%. So a very good second week now. Still early days, but good sign.
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So what is happening with WC8? At this stage, there are no other clear signs, except that it is playing the macro. Some theories going around that we may have a bad quarterly, or some other news - its possible, but there is no capitulation at this stage. There is no denying that WC8 is playing weaker than it usually does. Two weeks back it reached 29. Last week 28. This week 27. So coming down. If it was its usual self, today was the day it would have reached close to 30. Instead struggled to reach 27, finished on 26. Not sure why this play. I was not very comfortable, so played accordingly. Needs to break into 30s for a positive play.
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So what may happen next week? Last week I had written, it looks very uncertain. This week we have hope. There is a good probability most Li stocks may have made their 52 week lows in recent time. Tonight is a big play. ALB needs to hold 92/94 level. The next level is around 102/104, but before that it has to scale 98. Chinese stocks came roaring today and made big gains early in the day. Like most Fridays, which I have been writing, Chinese stocks play weak in second half of Friday. That play continued. So a big gain was reduced to a moderate. But still a decent gain for the day. ALB may want to consolidate at 92/94 level so that it can become ready for next level. It can go straight, but consolidation and then a jump may be more positive. General markets too held. CPI/PPI data came in all right. Bitcoin after reaching 90k is back over 100k. VIX below 20. So signs are good. But we need to seize the momentum, the positivity that is slowly building. Will that happen? Lets hope so. Enjoy your weekend and all the best.
(20min delay)