AZL Daily Report, page-613

Is Lithium back?

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From a weekly perspective, AZL moved from 1.4 to 1.6. Volume slightly better than previous weeks.

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So what is happening? For those reading my posts, last week I had written that the Li play has got slightly better. ASX and US Li stocks were more than 20% above their lows. Only problem was Ganfeng. It was making 52 week lows every week, and was just above 2% of its lows. I had written that we cannot have a party unless Ganfeng joins the party. I had also written, that the best case positive scenario was that ASX and US Li stocks maintain their level, and then Ganfeng rises to remove the divergence. So what happened? It played out exactly as I had wanted, if we were to bottom and reverse. Ganfeng gave that signal yesterday. Today it has nearly confirmed it. So probability of reversal for the sector has increased considerably. We still need early next week for confirmation. But it's looking good, the best in last several months.

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AZL too made some gains, but not as much as few other stocks. Hopefully soon.

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Personally, based on Ganfeng play yesterday, I got my first buy signal yesterday. The timing for me was good. As I had been writing, I was mostly playing Uranium stocks. They gained around 30 to 50% in a short period. I felt it had reached a decisive point. I got out a fair amount from Uranium and put into Lithium. I bought half Li stocks yesterday and rest today. I have bought big. After several months have bought so much Li stocks in 2 days. Hopefully it's not another false start. It can happen, I am playing with my risk reward, please check yours and dyor, as the sector has been brutal.

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So what may happen next week? It would be an understatement if I said that things are beginning to look great. Ganfeng was twice stopped today .

After 10% rise, stock trading is stopped. So after Ganfeng gained 10% in the morning, trading was stopped. It started again in afternoon, but was stopped again as punters were happy to buy the 10% daily limit. Few weeks back, Ganfeng had done the same 10% thing, but then gave it all back. So that can happen again. But it looks different this time, based on my trading pattern. Overnight US Li stocks, which had very good gain yesterday, need to hold the level. Even if they don't march, but just lose couple of percent, that may be fine. But I have a feeling ALB may get to 100 tonight, a number not visited for over 2 months. Next number to watch 106. Odds are good. Will it happen? Let's hope so. Enjoy your weekend and all the best.