Waiting for confirmation?.Yes LRS remained flat to finish at...

Waiting for confirmation?
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Yes LRS remained flat to finish at 21.5, volume was moderate, just over 16m shares traded. Couple of weeks back, when coming back from our lows and crossing 19, for a few days 22 turned out to be a stiff resistance and I had written around it. Last couple of days again its showing the same hesitancy, at or just below that. So not unusual, we may need a better Li day to overcome that. Next level is 24, which eluded us even in our recent run up, so lets see if we can overcome that, but first step 22.

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Yesterday US Li stocks had a bounce along with the indices. ALB got to 119 and many other US Li stocks had gains around 4/5%. So after a big push down from previous 2 days, some signs that we may have seen a bottom of this phase, but we still wait for confirmation. Reason being it could just be a bounce (some call it a dead cat bounce). So we wait.

ASX Li stocks today were not in the mood to go anywhere. Most stocks had recovered from their bottom of yesterday and were trading in the upper range towards the close of yesterday. Although US Li stocks did well yesterday, ASX Li were not buying it for now. Usually ASX Li follows US Li, but today it didn't happen. Why? I think there are 2 reasons. First, yesterday ASX Li bounced from its lows in morning, in anticipation that US Li may do all right. So it pre-empted that and made gains for US Li rise - and it played out according, yesterday ASX Li got it right. Secondly, Li stocks have had a rough ride. Punters now need confirmation before they become interested. So we wait for tonight US Li. Most ASX Li stocks just traded in the same range, small up and down for most. Volume comparatively was much low than average - another indication that punters not ready to buy yet without confirmation, but not anxious enough to sell as well. So a small stalemate.
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Personally no trades for me today.

So what may happen tomorrow? Its a very tricky scenario. US Li had a very good gain yesterday, sometimes its difficult to do that 2 days in a row. But, stocks have fallen decent in last few days, so all are still much below their recent upper level - hence one would think they have to continue their march if we believe Li sentiment is at least neutral if not positive. US Futures in slight red currently. Many US Li stock futures also in small red. But its still very early. Two key plays to watch. ALB to get above 128 - that's the first key number, but its still a bit far for a single day, though yesterday ALB did a big rise. If it eases, anything above 115 may be fine. SQM to get over 50. If we get a good overnight US Li play, most ASX Li which were hesitant today, may cut loose tomorrow. Will that happen? Lets hope so. All the best.