AZL Daily Report, page-583

Further wait.

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From a weekly perspective, a drop from 1.6 to 1.5. No volume. For the whole week 20m shares traded, average 4m per day, which is one of the lowest for AZL. We got an announcement. It was a good announcement. 2 years back, this sort of news would have given 30/40% rise. In current environment - punters saying, I want to see Li macro improve first. So it barely moved the needle now. Most other Li stocks are facing same behaviour. One day it may change.

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So what is happening? Same as last few week. Li macro play in control of most Li stocks. Li macro currently still weak. But after PLS buy of LRS and GT1 higher raise, many Li holders feel something similar could happen to their stock. So a slightly volatile week. During this week many Li holders tried to make a start. And some gains were decent, around 15/20%. ALB too was behaving well. Still above 20% of its low. But not Ganfeg though. It made a new 52 week low today. Not before doing a runner couple of days back, which led to many punters buying in thinking we may have seen the bottom. At this stage, it looks like a false start. So maybe more wait before the bottom/reversal happens.

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Personally no play for me. Till I see ALB and Ganfeng show some reasonable signs of reversal, I will wait. I wrote the same last week, and may be for several weeks.

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So what may happen next week? It was looking good in the middle of the week. ALB really providing some promise. Ganfeng too a big rise couple of days back. But as I had written last week, I felt this bounce is more of a technical bounce rather than a fundamental bounce. There is still hope though. ALB providing resistance and hope, still 20% up from low. But Ganfeng has given up. It finished at 25.52, another 2 % lower than its previous low, and very close to its current 52 week low made today at 25.41. Signals from Ganfeng are not good. There is a chance ALB may be in trouble tonight, trying to hold 80. If it stays above 80, ther is still hope. Also Powell to speak at Jackson Hole. He can move markets. So lot of nervousness around that as well. But at least some good things in last couple of weeks, lets hope we continue to see this trend. Enjoy your weekend and all the best.