What happened today, did someone press "ditto"
Yes, the trading today was exactly same as yesterday. The volume today was around 6.5m shares (yesterday was around 6m). We finished even-stevens at 50c same as yesterday. Had a high of 54c and bottom 48.5c. Our VWAP average today was around 51.2c, so we finished lower than our VWAP.
The ASX Li sector had a good day on the back of very good Dow and a decent ASX. Among the shares I track, average gain was between 4 to 5%. Overall last few days has been good for Li stocks which is a welcome change after a very bad last week.
So another day of consolidation on comparatively low volume. When we were making big gains, our volume was in the range of 20m shares. When we went down the volume was around 10m shares. Our consolidation phase the volume is around 6m shares. It tells me that our big buyers are taking a rest. They have brought it from late 30s to around 50, want the churn to happen before they join us on our next leg.
Personally I did not do any ESS trades but did some around other Li stocks. Took some profits from my trading shares, especially those that made good gains. Also added some which I want to keep for long and added some shares which I felt were lagging compared to others.
What next - We have had this churn for 2 days. Normally I see this for 4 to 5 days, but circumstances could be different here. The ASX macro is also driving the sector and SP, so it can shorten the period. In our trading before, we have seen that if our SP has lacked the VWAP, normally we have done well. Our VWAP was 51.2c and finished at 50c - so that bodes well for tomorrow. We are still trading around the 52c mark (few pips up and down). Our next leg is upto 68c, but in this consolidation 54c is proving to be a small barrier. We touched it last 2 days and went back. One good thing for today was though we finished at same 50c as yesterday, our low was 48.5c (yesterday was 47.5c), so we did a higher low - many traders find this a positive step for the next leg up. In fact, last 5 trading days, each day we have done higher lows - so that is all the more better. Will we see a push tomorrow towards the 68c mark to finish in 60s? A good dow/asx can certainly help the cause. We can see we need some help from our big buyers (those who bought very big late 40s on Friday), hopefully they are back tomorrow and repeat their performance. We need to clear a small wall that is building around the 55c mark - One big push and line wipes will do it. Lets hope we see the action tomorrow - back to T20 rather than test match
