Li sector at critical level?
Yes WC8 lost half cent at 41 on comparatively lower volume of just over 8m shares traded. A mixed day, strong buys initially, but then not able to keep the gains.
The whole Li sector is at a critical level. Most punters thinking - is this the bottom or more to come? As I have mentioned before I use ALB as one measure. Last week it had tested the bottom at 112. For last 2 days somehow its holding the level. There was a chance it could move quickly towards 100, or do double bottom and move up. It has moved up but has not crossed the first critical level around 127. Yesterday it did reach 127 but gave up good gains for the day, though still finishing green, is now around 122 mark. It needs to get over 127 and finish over it. Next level is around mid 140s - then it would have done a full circle after making low of 112 earlier, reaching around high 140s and then going back to 112 to reverse. Lets see what's in store.
WC8 also looking for footing. Got a good announcement, but in this phase, the broader Li macro/sentiment is more overpowering than individual stocks. So we may need its support to get higher. Number wise, lower number is yesterday's touch of 38.5, but to stay above 40 would be a very positive sign. Upside, needs to get over 52, but first over 47 and finish over 47. Today though we finished slightly lower, we did a higher high and a higher low compared to yesterday - though not much, but still a good indicator.
Personally am still holding from 40.5c as I mentioned earlier. Watching intently to see what is in store.
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So what may happen tomorrow? Its a short week and last trading day of the week. Much depends on US Li overnight. Today many Li stocks were wanting to get out, many finished in green but there were equal number of reds - so although a small move up has started, its feeble for now. I have a feeling if we get another good US Li tonight, this time many stocks may do a runner, including us. Will that happen? Lets hope so. All the best.
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