AZL Daily Report, page-557

Is something brewing?

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Yes, a strong play today, AZL moved from 1.8 to 2. Couple of big hits to take care of lingering play at 1.8 level. Also a good bite at 2.1. Volume too was decent, just over 12m shares traded.

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So why did we rise today? Not sure. Some see value here and are ready to step up. Maybe some news is in the offing. Maybe those that were selling out in last several weeks for tax reasons, want themselves in. Although surprising, but not unusual. From a numbers perspective, first number to get to is 2.1, and stay above, and then 2.5. The buying today shows that slight change in sentiment or some big players wanting in, suddenly SP can have a very rapid rise. But at this stage its still towards the lower side so please check your risk/reward.

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So what may happen tomorrow? We need a follow thru to confirm out of the bottom. Last week or so I have been writing how I felt that level of 1.7 (+/-) may be our bottom. Although we still need confirmation, odds of that happening has increased after today's play. China Li rose today, Ganfeng gaining over 3%. There is a good chance US Li may rise tonight. There is a good chance ASX Li may be in green tomorrow. I picked up few Li stocks today for a short bounce play. It gives us an opportunity to get decisively over 2.1 tomorrow. Will that happen? Lets hope so. All the best.