Playing with weakness?.Yes in the weak zone currently. From a...

Playing with weakness?

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Yes in the weak zone currently. From a weekly perspective a drop of 1 pip from 2.2 to 2.1, so not much, but was not able to break above 2.5 on a very good announcement on Monday.

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Overall, the Li macro is still very weak. Most stocks made their yearly lows in early Feb, there was hope that it is the bottom of this phase. But many Li stocks are still struggling, including US Li stocks. Many ASX Li stocks have in fact gone below Feb level, though majority are still holding above. Many within 10 to 20% of that low. Our low in Feb was 1.9. So we are in the group where we are close, slightly better than those who have gone below. But macro is not improving significantly to give any comfort, so a tough time for most Li stocks including AZL.

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Personally when 2.5 break didn't happen, I let go some of my shares at 2.5 and 2.4. My buy was average. 2.6, so took a small hit. I have always written that price action is most important for me, as I am not good in quantifying fundamentals. Li sector is not in a good state currently. Those reading my weekly report, I had been writing for few weeks and that I got out of most of my Li stocks and just holding 2. Couple of years back, my average was around 20 Li stocks at one time. How things have changed. I know by myself I can't do to change those, best I can do is follow what market is telling. But I still hold a lot of AZL, still one of my biggest holding, but a bit reduced. Any sign of reversal, I will be the first one to get back. Hopefully soon, hopefully we get some great news.

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So what may happen next week? We need Li macro to improve the. Full stop. That will be the biggest driver. Any news for us will definitely help, but depends on the quantum. On weaknesses, 2.1 is key, failing which 1.9. On strength, 2.5 break is the key. Let's hope it's on the upside. Enjoy your weekend and all the best.