Are we back on uptrend?.
Yes, WC8 finished 2c up on 50, with moderate volume over 8m shares traded. We opened on 47, reached 53, and finished right in the middle at 50. Yesterday we did the same, low of 44, high of 52, finished right in middle at 48. Do the chartists like it? I certainly do.
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So do we feel we are back? Still early days I think. There are two key levels to get, just to douse the downtrend flame, not talking about big win. First to get over 55, next over 62. My first buy in this phase as I wrote earlier was at 62. For me it is a key zone which may say whether we play with strength or weakness. So still a fair bit to go, but today's trading has given indication that there are some big buyers who have joined. Let's hope they have a big appetite.
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Personally a small trade for me today. I like to trade and sometimes just play for the kicks, and small pocket money. When 53 was not breached and we reached 52.5 few times, I did sell a small portion at 52.5. Then for few hours I waited to buy back at 49. 5, I was second in queue for sometime, now first, but it never reached there. So played the closing auction, but my order was partially filled, but a good portion bought back, some small 3k shares left. The reason I played this is because I follow trading patterns, and once 53 was not breached, I thought we will be like yesterday and finish in middle at 50. Somehow it happened that way, but was playing with only a small portion of my holding. My average is just under 49.
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So what may happen next week? Li sector sentiment is still weak. ALB again went down yesterday, even though markets were green. Reached 115, close to 112, it's 52 week low. I would like ALB to get to mid 120s, at least to start with. That may make Li sentiment slightly positive, if not neutral. I know we can carve our own path, but I feel we need macro at least to be neutral for some good gains. It can happen. The sector is on decline for 18 months. Odds are not bad for an upside. But it needs to happen. Let's hope we see a good Li day in US overnight, that has the potential to get us over 55 and finish over that. Will that happen? Let's hope so. Enjoy your weekend and all the best.
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