AZL General Discussion, page-19483

Consolidation?

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Yes AZL lost 3 pips to finish on 4.2. Our volume was comparatively low, just over 32m shares traded. Opened on 4.5, reached 4.6 high, 4.1 bottom and closed near the day's low at 4.2. Most of the trading happened on 4.2.

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So what happened today? To me it looked liked consolidation. As I mentioned yesterday, the stock has a good gain, first two weeks of rise nearly 300% gain to reach 5.8. Since then its trying to do back test, consolidation, checking supply. This also will bring the price closer towards moving averages. As I said yesterday, without any announcement or some big buyer, technicals may have a major play, and at this stage its pointing towards trading like that today.
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Also the macro didn't help much. ASX Li stocks were generally weak.

So how long will this so called consolidation go? Not sure. Stock is trying to find a bottom before a possible next leg of gains. I have mentioned two number, 4 and 3.6. We held 4 today again, infact didn't even need to go there - so that is held for now. If that fails I feel 3.6 may come into play, but we have a good support there, but it still needs to play. Upside, first number is 4.6. In last 1 week of trades, we have done 3 days high of 4.6. If we cross that, a big resistance may come at 5. Volume is decreasing. On Friday we had done lowest volume after moving to 2s. Today was lower than Friday. So signs of consolidation, finding bottom - looks to me. Sometimes this phase can last up to 2 weeks, but anything can happen - depends on punters/news etc. All these my thoughts, I could be wrong, so please dyor as stock is in a small downtrend now.
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Personally, picked up some oppies at 1. Some large sellers of oppies today - not sure why that was. They were being snapped, but at this stage we don't know who did the right thing - buyer or seller. If this phase continues, I wouldn't be surprised to see some more sell as some punters may want to play safe.

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So what may happen tomorrow? At this stage without any news, there is a chance of more churn. Our volume was not very high to do a lot of churn, so it may take sometime to wash the available supply. It would be good to hold 4 in this phase. Will that happen. Let's hope so. All the best.