Yes AZL lost 3 pips to finish at 7.3c. Our volume was still on lower side, just over 8m shares traded. After losing 7.7 there is always a chance to trade in this zone between 6.8 and 7.6 - today general market and weak Li stocks did not help the cause to get back to 7.7 - hopefully soon if markets behave
ASX Li stocks declined along with most resource stocks. Of the 54 stocks that I track, average decline was 2.5%. A number of factors contributing to steady decline in Li stocks include general market, reports and now this China situation. Stocks are the weakest in over 2 weeks now and today's trading again reflected many want to be risk averse at this stage. Sentiment is low now. Many stocks breaking their key resistance levels, some barely holding it. We need macro condition including general markets to pull us up. Lets hope we get that soon.
What next:
Will keep it short as covered some in Weekend Report.
The decline in resource stocks which started couple of weeks back continued today. The situation in China not helping the cause.
SP 500 is reaching a very critical level - the test of 200 day moving average from which we have failed multiple times this year. Lot of analysts feel that it may happen again. But there are some who believe we may cross this level around 4060 and get to next around 4150/4230. Crossing this may signify a bull run, else will be classified as another bear market rally. On decline, we need to hold 4000 and 3900 if we go there, else we may have a bigger fall.
So what will happen tonight? Unpredictable but China situation has given a fodder for red. Futures are already red. I still feel the technical battle between bulls and bears at key resistance levels will be the main driver rather than China. There is a chance from technical perspective that we should go another 2 to 3% before a final showdown (unless we get shot by 200 day moving average). Will that happen? Lets hope so. All the best.
AZL Price at posting:
7.3¢ Sentiment: Buy Disclosure: Held
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