Signs of reversal?
Yes WC8 gained 4c to finish at 43.5 on a very good volume of just over 16m shares traded. Much better volume and much better play today, first signs of bottoming/reversal may be in play, but please check for yourself. Opened weak at 38.5, but made a high of 45.5. Usually, if its not a strong day, it finishes somewhere in the middle - that would have been 42, but finished at 43.5, so a stronger play today. Since losing 50s over a week back, this has been the highest finish. So looking good for now.
So are there signs of reversal? Possibly, but still early to say. The Li spot price which is down over 80% for the year, lost only around 1% or so in last month - so rate of decline has slowed considerably. Last couple of days we are also getting daily green in spot price. So signs of bottoming are there, whether it continues, is to be seen. Secondly, I had written yesterday that ALB is one of the key indicator of Li market sentiment (along with a few others, for simplicity I follow ALB). Yesterday was a critical day sitting at 119, either going to 52 week low of 112 or first stage 127+. Nothing very dramatic, but it has moved to 122, still some way to go. Thirdly, if there is going to be reversal, some of the big stocks usually take lead. For the second day in a row we saw bigger stocks like LTR, SYA, WC8, INR, LRS etc finishing in good green, average around 10%. Many others too in green, but not much at this stage. But going in right direction. So all this pointing to some change in momentum, but still early days.
Personally I always play with a portion of my stocks, between 10 to 30% like to trade so that can rotate, have coins etc. So sold around 10% at 45 in case it dips so that can buy some for the dip. Was tempted to buy back in closing auction, but thought will wait for tomorrow. If it goes up, more than happy to buy higher as my other 90% is also moving up. My average as mentioned last week is around 40 for now.
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So what may happen tomorrow? A good day yesterday for US Indices as well as ALB, though not all US Li stocks were in green. But it was enough to give some hope to all beaten down stocks. Many are waiting for signal and may jump as the sentiment improves. We need a follow up tonight on US Li stocks. If that happens, many may cut loose tomorrow. Will that happen? Lets hope so. All the best.
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