General Discussion Topics, page-131796

When will it stabilise?

Yes SYA lost 5 pips to finish on 5.9c on a massive volume of over 405m shares traded. This was the highest volume since we did a big drop in August on lost 10c for first time, that day we declined around 30%. So second highest volume for last 1 year.
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Yesterday US markets were closed. ASX in general was jittery and tentative, and most stocks played with caution. Which meant, some red for a large number of ASX Li stocks today. Mostly not big, few percent average. SYA lost a bit higher, close to 8%
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So what is happening now:

• Stock is become very volatile.
• The volatility is also indicative of the fact that we have not found our level of this phase
• A week back we finished at 3.8. In last 5 trading days, we made an intra-day 7.2 - which was a 90% gain
• The shorters (also maybe some profit takers) then pushed it down to 5.8 - a drop of around 20%. Today it may also have played - buy the rumour sell the news, a very common term used in these cases
• Although overall other ASX Li stocks are also on the ascendancy, the biggest rise was here.
• Good news drove the share up. Unfortunately today was a weakish Li day, so that also didn't help today
• Usually the levels I track are narrower, but since SYA is playing with so much volatility and volume, its difficult to pin a narrow range. On weakness, a hold above 5.1 would be good, but to return from this level of 5.9 would be very positive. On the upside, as I have said a few times, 7.5 is a key number and we have failed to get over that couple of times - Last time 7.4, today 7.2. Getting over that will be very bullish for further gains.
• Although many may be disappointed with today's price action, bottom line is we finished 3.8 a week back, 5.9 today - a week back everyone would have taken that, so still positive
• When will it stabilise? When we see volume of less that 100m, I feel. Last 5 days minimum volume is 230m, so first it has to come below 200. We won't mind volatility and high volume if it keeps going up though, so lets hope it plays in our favour

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Personally it was a day where I had to play out. I had mentioned how 7.5 is key number, once I saw we have missed it, I got out at 6.9. My buy was 4.6 as mentioned on Friday, so I thought I will get out and see how it plays out. I was in two minds whether to buy back, but have bought a fair few now in closing auction at 5.9. Wasn't very convinced, I am hoping US Li stocks do well tonight, otherwise we could see some more volatility and I will wait for tonight to see whether to add or subtract. Last time also I had exited when it didn't cross 7.5 - so a similar play.
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So what may happen tomorrow? US markets to open after 1 day. All eyes on US Li tonight. On Friday, ALB did a good move to move to 122, getting away from 108 bottom. First key level of it is to cross 127. But even if it hold here, it could be positive as it has been rising slowly for last few days. That may give some air to ASX Li tomorrow. Will that happen? Lets hope so. All the best