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 decent drop, moved from 14 to 12.5. But also made played on new 52 week low at 12.5 this week, there was one last week as well. So not looking great at this stage. And with tax sell next week, not sure what will happen. Li macro which was improving last 2 weeks, has deteriorated this week, so a tough time for holders. Lets hope next financial year is better. . . Major price action indicators-
ALB - Loss of around 7%, and now back under 20% from its lows - back in danger zone
Ganfeng - Loss of around 1% for week, Tianqi loss of around 2% - loss not as big as other big player indicators I use
PLS/LTR - PLS loss of 9%, LTR loss of 7% - so big gains of last couple of weeks is getting eroded,
Spot Price - Loss of around 0.4% for week, so after 1 week of gain, back to familiar decline, but was small
. So what do these numbers say?
After getting some positive signals last couple of weeks, sector is again getting tested
Also no clear signs of reversal yet. Bottoming which was looking better, is now in doubt
All big stocks which I use as indicator - ALB/Ganfenq/Tianqi/PLS/LTR - last week all were above 20% from their lows, this week ALB/PLS/Tianqi have lost it
After 2 weeks of good green, instead of consolidating, stocks had a big drop, so a bit concerning
Second time in recent play, LTR is making another attempt to break out. Last attempt it reached 85. This week it reached 73 before losing steam, and came down to 63. So there is a question mark now
Many LI stocks are heavily shorted - MIN/PLS/LTR are 3rd, 4th, and 5th highest stock on ASX
Most Li stocks, both ASX and US, are still at or close to their last few years low, so they are not showing any signs of bottom/reversal yet
PersonallyI have not been playing Li stocks as I have mentioned a few times last several months. . So what may happen next week? On Friday night, US Li stocks were in red. General markets had a moderate red. So a tentative may be on Monday and then wait for Chinese markets to open and provide some direction. . . Here is the Figures for the Week:. . .
WC8 Price at posting:
12.5¢ Sentiment: Hold Disclosure: Not Held
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