Day as expected?
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Yes WC8 gained 4.5c to finish at 79c. Our volume was similar to last few days, just over 29m shares traded. So a decent increase in sp and followed it with good volume.
It wasn't without a scare though. Shortly after open a push towards 68.5 before buyers stepped in. Pushed it all up to 82.5. Towards the close of the session, a big battle on number 80. Though there were big buyers, they were met by equally enthusiastic sellers. A tug of war went on till the close. I don't think anyone won today on 80, so we could see the match resume tomorrow.
Yesterday I had written it was good we had gone over the hump of 3 green days. Anytime we have gone over that, we have done 8 greens or 8 days withou red. Today's trading kept that pattern in play, a fifth consecutive. Will we get to 8?
Lot of concerns now that the sp has risen, the market cap has increased. Talks of overbought. Talks of concern around market cap. All valid points I think. In the current play in ASX Lithium where I follow 96 stocks, there are only few to play - for immediate term (lots for medium/long term). Either some speccie rising on hype (I am playing 2 of them, mainly scalping), or what I thought looked like a real deal. When I was buying in 30s and 40s, the main thing in my mind was that something is going on. Fundamentals I know its difficult to quantify. Just based on one action, billions can move in a day. Like LTR moving from 125 to 250. LTR moving from 300 to 170. Fundamentals didn't change in a day. But market caps moved by billions. Just shows its very difficult to quantify market caps - so many factors in play. Even here when in 30s and 40s, market cap was around 400m. Many felt it is very big and not warranted. It has moved to 800m - and again many feel not warranted. I feel the thing in play here is that there are not many "real" plays in Aus Li land. And if something looks very likely, there are big pockets in industry who are ready to pay the price. If WC8 continues to make good progress, it may continue to rise. So those big pockets who to play Li in Aus will do whatever it takes. That's what I think is happening. The opposite thing - I mentioned it before as well - all of us are being set for a big rise before we get a rug pool and big slide. Probability after seeing buy in this way is not high, but we should always think of what can go wrong.
Many feel and talk about $1. Its a round number. And round numbers sometime act as magnets. Pattern play there is chance of either green or flat for another 3 trading days. If things go well, I feel its lining up. But things can go wrong as well, so please dyor. All the best.
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