Consolidation or something to worry?..Yes WR1 had a decent week,...

Consolidation or something to worry?.

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Yes WR1 had a decent week, a rise from 54 to 57.5. Volume much better, especially on the rise days. Some may be disappointed with the finish, especially because we reached 64.5, but most Li stocks played this way, WR1 was still better.

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So what is happening? Chinese markets were closed this week. So we practically didn't get much direction. So most Li stocks stayed in consolidation zone. A few percent on the down side, on average. ALB didn't have its mates, Ganfeng, Tianqi, etc. So did not know what to do. Usually there are 2 forces, Chinese and the rest, and usually they complement each other. So that play didn't happen. It was more or less a waiting game, mainly trying to hold the level. So we wait possibly for Monday.

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WR1 is too playing the macro, but slightly on the positive side. It wanted to run away, but macro is very strong currently. So only very strong fundamentals, like takeover, funding etc can change that. Otherwise small getting ahead is stalled. We saw that this week, so nothing unusual. From numbers perspective, I don't have a clear pattern. When WR1 has gone weak, it has really gone weak. But anything below 53.5, I will be concerned and may decide to take some action. Upside, we need to cross mid 60s, for a start.

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Peronally I have been playing a lot of Li stocks this week, rotating and trying to sell a portion and buy back to reduce my average. I do that all the time with a portion, as those reading my posts would know. Sometimes it works, other times not, but I like it. It worked this week. On Monday, when ALB came back from 98, I realised that double digit gains is not for this week. So I thought we may consolidate, drift down a bit, be in holding pattern, and wait for next week. It has played out that way till now. I sold a portion of WR1 at average 63 and bought back today at average 56.5. My last week average was 51, slightly reduced now to 49. Reason I was playing 63, is last time it reached 60s, in somewhat similar fashion, run away, it reached 63.5. This time though it reached 64.5. So I was happy with that play, I enjoy the small games of pattern. But overall, I am still thinking consolidation, but last 2 years have been brutal, so please check your risk reward and dyor. I am comfortable till now, but that could change. I try to follow price action.

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So what may happen next week? ALB is down 2%for the week, but ETF of LIT is up 2%. So narrow range, holding pattern. Many Li stocks had big gains last week, double digit gains, so may not be bad from that perspective. There has been attempts to push ALB down, but it has held till now. All 4 days it finished in 94s, which is roughly 30% up from its lows. It has to hold tonight as well. Many may interpret this week play as weakness. It's possible, but there is no confirmation yet. No big sell offs. So looks like consolidation, but let's see. The main play is on Monday, Ganfeng 10% rise in each of last 2 days. Will it continue, consolidate or drop big. We don't know. We wait. Another pattern is ALB making double digit gains alternate week. If that continues, next week we may see ALB above my first confirmation level of reversal, above 106. Will that happen? Let's hope so. Enjoy your weekend and all the best.