AZL General Discussion, page-9520

EOFY Sale in full swing

Yes AZL lost a whopping 1.1c to finish on 8.1c. Our volume was on the higher side, indicative of sell, over 63m shares traded. AZL reached my buy zone today so bought half of my shares that I sold earlier. I had figure of around 10% down from yesterday for the buy, so picked up a fair few AZL at 8.2c today. Though its looking very weak, I went ahead with my plan and bought half of what I intend to buy.

ASX Li stocks were also up for grabs. Of the 43 stocks that I track, average decline was 4.5%.

US Li stocks had a decent night yesterday with small gains across the board. Most stocks including ETF of LIT gained between 2 to 4%.

ASX Lithium sector seems to be in turmoil. First LKE started the big slide yesterday, today a few others went down over 10% including LKE, CXO and AZL. But if there was such strong negative sentiment, US Li stocks would not continue to have gains - at least that is what I am thinking. My read is that major factor is EOFY sell, though I could be wrong. Another week and then it will be clear.

What next -

More EOFY Sale.

As I wrote yesterday, everything was pointing towards a strong US green. And it did deliver. But from my notes from Monday, I had said that one very good day in US markets will not be bought by ASX, we will need at least 3 days. And that's what happened today.

First reason is the sentiment is still bearish and many fear that US markets will have a bounce but there is no cetaininty that it is a reversal. It did have a bounce but many are not sure if its a reversal rally. More data is required.

Second our EOFY sale is on. By my counts there are 4 more days left. Tuesday should be last as settlement needs to happen by Thursday 30th. So that sale is on today and may continue.

Yesterday I had mentioned that some analysts believe that we are within 10% of bottom from yesterday. Some shares reached there today. Although there is no guarantee of that theory and shares could fall further, but I picked up some shares which reached that zone.

Tonight probability is for a red US indices. Powell is also to speak before Senate and that data will be available before market kicks in. His tone may have an impact on the US market tonight. Although probability is for a red, and if Powell doesn't drop a bombshell, I feel it may not be a big red. If its not, ASX will take that positively tomorrow. It will be a tussle between EOFY sellers and bargain hunters. Not sure who is going to win. Lets hope we have bottomed or very near bottom. All the best