I thought we had a decent week from a numbers perspective, without being spectacular.
Last week we finished at 43, this week at 46 - so weekly gain. Also Li sector got smashed this week, WC8 was one of the few stocks to keep its head above water.
We did have a scare though. After making 50.5 it came down and touched 42 before the usual suspects got in action and started mopping away.
Based on comments I have been reading, especially around charts, it looks like we may still be in an indecisive state based on that thinking. I feel a rise above 52.5 to make a new ATH will need to happen to quell that weak perspective by few. It tried once this week, reached 50.5, so some may say it did a lower high. But the converse is also true. Last time in downtrend we reached 33.5, this time reversed from 42 - so a much higher low, which could be read as very positive.
As I have been saying for last few weeks, just the trading pattern I have been watching, it seems something is going on. I had mentioned it looked to me like accumulation, but some others are calling it distribution. Unless we get out of this zone, we will not know for sure, but till now I continue to feel that accumulation is happening, based on trading pattern/price action/big buy/big sell, buy please dyor as stock is still volatile, sector extremely weak.
This week is another crucial week. Li sector is in Extreme Fear now. If it was the opposite, like Euphoria of early last year, I would be absolutely confident of big gains in short term. But Li macros could have a tempering affect. But the price action has been good. Crucial would be able to see if in the next up wave whether it takes out 52.5. It would be good to hold 42 now in any weakness.
Personally I added more this week. I usually trade a portion of my shares, sometimes it helps in getting my average down. But I play with only a portion if I am looking to at least hold medium term. So I bought at higher price, but because of some buy/sell was able to reduce my average to 36 from 37 as of last week, not much, but I enjoy trading as well.
For those interested how the stock is tracking against other Lithium stocks or who hold multiple Lithium stocks, I do a Weekly Report across 96 ASX Li stocks. It has got Weekly/Yearly data how stocks are tracking. I also have commentary across general markets and sector. Those just holding specific stocks, it may not be relevant, so please ignore.
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