WR1 General Discussion, page-32375

Is something brewing?

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From a weekly perspective, a small gain from 56.5 to 57.5. So may not look big from a weekly perspective, but there are few stories within. Firstly, played in 60s after nearly 3 weeks. Monday volume was very big, and it looked primed for a rise. It did rise further, but rest of the week was on small to moderate volume. One indication that it may not have been ready. Secondly, it was one of the few stocks (except LRS/GT1 which went on news), that a nearly 40% gain was made from its lows - from 46.5 to 63.5. Shows that if the sentiment changes in sector, it can have a big rise. I was writing that a small sentiment change can suddenly five 40% in many Li stocks in a blink, WR1 is an example. Or maybe something is brewing. Maybe something similar to LRS/GT1 may be in play. We don't know. It was looking like that, but last few days volume, and todays slight drop and showing its playing the macro, may be an indication that some such news is not imminent. But still a much better play by WR1 than many other Li stocks. Lets see if it continues.

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So what is happening? Same as last few week. Li macro play in control of most Li stocks. Li macro currently still weak. But after PLS buy of LRS and GT1 higher raise, many Li holders feel something similar could happen to their stock. So a slightly volatile week. During this week many Li holders tried to make a start. And some gains were decent, around 15/20%. WR1 too behaved like that. ALB too was behaving well. Still above 20% of its low. But not Ganfeng though. It made a new 52 week low today. Not before doing a runner couple of days back, which led to many punters buying in thinking we may have seen the bottom. At this stage, it looks like a false start. So maybe more wait before the bottom/reversal happens.

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Personally no play for me. Till I see ALB and Ganfeng show some reasonable signs of reversal, I will wait. I wrote the same last week, and may be for several weeks.

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So what may happen next week? It was looking good in the middle of the week. ALB really providing some promise. Ganfeng too a big rise couple of days back. But as I had written last week, I felt this bounce is more of a technical bounce rather than a fundamental bounce. There is still hope though. ALB providing resistance and hope, still 20% up from low. But Ganfeng has given up. It finished at 25.52, another 2 % lower than its previous low, and very close to its current 52 week low made today at 25.41. Signals from Ganfeng are not good. There is a chance ALB may be in trouble tonight, trying to hold 80. If it stays at current level, up 20% from its low, it will be very positive and very hopeful. If it stays above 80, there is still hope, and still slightly positive. But if it loses 80, there could be trouble. Also Powell to speak at Jackson Hole. He can move markets. So lot of nervousness around that as well. But at least some good things in last couple of weeks, lets hope we continue to see this trend. Enjoy your weekend and all the best.