Li sector remains at critical level?Yes GL1 lost 3c to finish at...

Li sector remains at critical level?

Yes GL1 lost 3c to finish at 53.5c on an average volume of just over 1.1m shares traded, similar to last few days.

Couple of other Li stocks where I was writing, yYsterday I had written around how Li sector behaving, the downtrend, whether bottom is there, how much more to get to bottom. I had written how ALB play yesterday was important and it needs to get above 127 to give signs of reversal of sector. Unfortunately it didn't go above, finished slightly in red. Its around 121 level, somewhere in middle between its 52 week low of 112 and possible 128 to cross first stage. Although some US Li stocks were in green yesterday, but not ALB. Last few days ALB is showing an intent, goes up, but gets immediately slammed down by shorters etc. So although its ahead of 115 from Friday, it has not crossed 127 above finish. That part where it gets slammed down from its day's high does not bode well for now - just shows its not ready, yet. So we are at a critical stage, still with some good concerns for now.


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.
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GL1 no clear direction for now. whole week it played in 50s, but with weakness. Waiting for macro to give a push.
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Personally no trades for me this week. Last week I wrote my average is 58.5, so am still down around 10% from today's close.

So what may happen next week? Whole week GL1 had no strong direction. So I feel it has no play of its own, its dependent on Li macro/sentiment to provide direction. Its playing in a narrow range within 10/15%, so not worth trading as well. I am holding moderate position but did not add any this week. I have decided to add only if it gets above my average. I may exit if for some reason 50 does not look like holding, but will hold otherwise. GL1 needs to get over 70 to get out of this weak sentiment, it looks far away for now. We also need Li macro/sentiment, ALB to be on our side. Though they are not great, but things can change quickly. Sometimes very quickly. PMT had reached 67 couple of days back. It got an announcement, which was good but not ground breaking. It reached 87 today - 30% up from its low. If sector sentiment was not bad, rise could have been have much more higher. But still to get 30% gain in couple of days, just shows, if sentiment changes, there is a good chance, Li stocks may rise between 50 and 100% in reasonably short period. But the big question is - when will that happen? Answer is - we don't know. Its best to follow price action rather than predicting and waiting for something - at least I try to do that, not completely, but to a reasonable extent. We have seen a large drop. We could still go lower. But the percentage drop going lower will be much smaller than the percentage gain if it goes up, hence risk/reward may be good, but still dyor. Will that happen? Lets hope so. Enjoy your long weekend and all the best.