Testing the level?.Yes LRS lost 2c to drop to 19 on a much...

Testing the level?

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Yes LRS lost 2c to drop to 19 on a much bigger volume today, highest for the week, at over 28m shares traded.

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Yesterday US market were big green, but once again led by tech stocks. The risk on and resource sector not doing great, once again. US Li stocks were flat, and one I track, ALB, in slight red. It set the tone for ASX Li today, play with weakness, and we did that.

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LRS also played with weakness. It was trying to hold 19.5 for some time, but gave it away today. 18.5 is a key number. When rising, I had written I don't like the play, because it didn't reach 18.5. In a downturn, it needs to hold that. Otherwise there is a good chance we may start playing around numbers which are close to 17. Today we lost 19.5 and touched 8.5. So the testing the lower level of this zone.

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Personally I expected a weak day today, on the back of US behaviour. Normally on such days, I sell on open and buy on close if I still want to play. Many times it works, but not always, so please dyor. Also this is for those playing short term trades, for long term, a hold may be better, unless it collapses. So I did that with half of my holding. As I wrote last week, my average was around 18, now marginally down to 17. I will exit if 17 looks fragile, but will add if it holds.

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So what may happen next week? We are nearly in the middle. We need to hold 17. We need to get over 22, a new resistance. I had thought about 24 will be a major resistance, but 22 in recent play has taken up that position. I feel if we get over 22, shortly then we could get to 28. Will that happen? Let's hope so. Enjoy your weekend and all the best.