Weekly data and thoughts. . Please not that all my views are for short-term only, and I could be wrong, so please dyor. . .. . Lithium Sector Overview- . . From a weekly perspective, WC8 had a small drop from 19 to 18.5. But, made a new 52 week low at 16.2. The star of 2023, when it gained 2800% in that year alone, is in strife. That year 2023, the beginning was at 2.4. Its still far away. But the way Li macro is going, who knows. Many may not have thought of a fresh 52 week low. But it happened this week. And also last week. I have stopped playing Li stocks, except a couple - WC8 and PMT, and only for swing trading, because they are hot and cold stocks. Not getting strength. Last week I had a play from 18.5 to 19.5. This week from 16.5 to 18.5. As good as it gets. I am out for now but will look for another small swing trade. The sector, just not lithium but many other risk based commodities in real strife. Only safe thing to play in last couple of years has been gold. So the wait continues. . Major price action indicators are mixed -
ALB - nearly flat, a very small drop, moved from 75.51 to 75.23
Ganfeng -Loss of around 0.5% for the week - Tianqi lost 1.5 - so exact opposite for both from last week
PLS/LTR - PLS gained 1%, LTR gained 2% - so another sign of plateauing
Spot Price - Down slightly for the week, I think around 0.3%
. So what do these numbers say? I feel the sector is reaching another indecisive state. Something similar I found in my analysis for Uranium sector. The steady down turn has been arrested, but no clear signs of reversal yet. Best hopes still lie with the Chinese Li stocks to take the lead. Ganfeng is still close to 50% from its 52 week low, so that's a very good number. Most US and ASX Li stocks are much closer towards their 52 week lows. So best play still, as I have been writing last few weeks, is Chinese Li stocks to take the lead, US/ASX Li stocks to do a catch-up. Ganfeng to stay above 37.50, ALB close to 81 to be above 20% of its recent low. Till these happen, the cat and mouse game may continue. . So what may happen next week? On Friday, US Li stocks had a decent gain. General markets also very good gain gain. So a bright start on Monday, and then wait for Chinese stocks to provide direction. . . Here is the Figures for the Week:.. . .
WC8 Price at posting:
18.5¢ Sentiment: Hold Disclosure: Not Held
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