Daily Discussion, page-9009

Volatile, isn't it?.

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Yes, RDN went thru a volatile week, a high of 4.9, a low of 3.8, back to 4.6 - its always fun times at RDN.
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So what is happening? Some big traders in control, I feel, making 20% swings on the flick of a match.

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Last week I wrote, next number to play is 4.8. If you read my posts from last time we reached 4.8, I had written I had exited at 4.8. Last week I mentioned 4.8 as a very crucial number. I exited again there. Twice it has happened now, once going down, next going up. Then it went down towards 3.8, I should have bought, at least at my number 4, but I didn't. Now I wait for next play. I am not sure. Reason being its being controlled by some big traders. Next number on upside is 5.3, downside 4. Lin sector is looking slightly positive this week. Hopefully, it should help here as well. I have bought 10 new Li stocks this week, something I have not done in the sector for a while. So lets hope sector gives a boost as well..
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This is what I wrote in my Weekly Report for Li sector, anyone wanting to know more about how 90 Li stocks have tracked, general market behaviour, other sectors, please look at my other posts.
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• Lithium Sector overview - This week Li sector has given hopes that the sector may have bottomed and we could see a reversal. Many ASX and US Li stocks were over 20% from their lows last week. This week they gained further, and many are now over 30% rom their lows. The only issue was Ganfeng. It was doing new lows every week. And price was within 2% of its lows. I had written that we cannot have a party, unless Ganfeng joins the party. So the divergence has to go - either ASX/US Li stocks fall, or Ganfeng rise. And what happened? Ganfeng made a weekly gain of around 25% this week, it has removed the divergence, and its saying - lets have the party. It was lagging behind, so while many stocks gained 10/15%, Ganfeng went big for 25, to catch up. But its still early days. For over 2 years, we have seen some of these bursts happening. Unfortunately none of them materialised. And soon stocks gave up the gains, and then went lower. And lower. So that can still happen. We need confirmation, hopefully in the next few days and weeks, whether we really have a reversal. The first check will be for ALB to get over 106, Ganfeng to get over 35/36. If they get over that, and most importantly, stay there, odds of a reversal would considerably increase. Till then, its best to follow price. I have gone big in the sector last 2 days, hoping that we see a reversal. But if the signs are not good, then I may exit. Please dyor, check risk/reward, I have taken a punt.