What's holding up for the play of 2.9?.Yes AZL gained 2 pips to finish at 2.8, on another low volume day of just over 7m shares traded. We lost couple of pips yesterday on another low volume day, regained it back today - so all squares for the week till now.
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Yesterday US Markets did well, SP 500 rising over 0.6% to close at 5149. So might look like a good day, but some things were still not great. It failed to get over its all time high, though it was a bit away, but closed towards the low of day. And for us, Russell 2000 was again in bad shape - not good for resource/risk-on type of assets. ASX started tentatively, playing in red, but got back to similar gain like US markets by the end of the day.
US Li stocks could not capitalise on the big rise in the indices, and more played as what Russell 2000 indicated. Many finished in red. The one I am tracking, ALB, did finish in green, but not big - at 124 now. SQM was in red. So ALB is still in a very indecisive zone, below 128 I feel it is playing with weakness - so although it was green yesterday, not enough to put a positive sentiment, which was reflected in how ASX Li stocks played today.
With no help from overnight US Li play, ASX Li were mixed, but more red than green. But not panicking, dropping a few only, waiting to see what happens overnight. So ASX Li still in consolidation mode and most playing in their usual zone of last few weeks. No clear direction yet.
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Last 3 days AZL has touched, even wiped out 2.8, but was not able to trade at 2.9. Why is that? I feel after 2.5, next number is 2.9. Many punters who are not sure, want to get out. I wouldn't say many, as the volume is not very high. But there are a few. Even when 2.8 is getting wiped, instead of letting it play at 2.9, they keep loading on 2.8, or even sell at 2.7. I think there are not many with big volume to hold this. So I feel one day a push will come and we will be safely into next zone. A catalyst - Announcement or good Li macro may help. It would be good to get to 3s. The sell pressure is not there, we just need a few buyers, hopefully it happens. But please dyor.
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So what may happen tomorrow? Again it depends on US Li tonight. ALB still in no-man's land. Needs to hold 120s, at least 118. Upside, it at least needs to get over 128.This is the same I wrote few days back, so we can see not much is happening. Spot price though is still doing well. And so if it continues, it might not take much for sentiment to change and ALB to get back to 140s. But first 128. That will be at least neutral to positive tomorrow for us. Will that happen? Lets hope so. All the best.
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