Tentative and a lot of hesitation?.Yes LRS gained 0.5c to finish at 18c on a small to moderate volume of under 10m shares traded. We got a good announcement, opened slightly strong, but then the macro took over. It was still good to finish in the green.
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As I wrote last Friday and on weekend, I used the term "strangehold" by which Li stocks have been held And it has played out that way. Last 2 days Li stocks are generally weak - as if held up and don't want to go forward. Yesterday US Li stocks played the same way. So not a great look, but this was building, and based on my observation, I felt this is coming and hence had mentioned it last week.
Yesterday ALB barely held the level. 118 is one of the strong supports for it, and it just held that. If it loses that then there could be a chance to see another 52 week low in early 100s. So it needs to get to 120s and more importantly over 128. Till then we are playing in weakness.
LRS also playing the macro, which is not going great for last few days. But I feel another small play happening in LRS. On the weekend I had written there is a chance of 17 to come into play and if that is not held, 15 becomes a target - if we were to go down. We touched 17 yesterday, first number I mentioned. Today also Li macro was not good, but I think the announcement helped, so we dodged any downplay test for now. Key is to get over 19.5 then it moves into another trading pattern and range. Below that I feel is slight weakness and uncertainity.
Personally I am also playing with slight caution. Last Friday I had written on a few Li stocks that I had exited or reduced holding as I didn't like how Li macro was playing. Same I wrote in Weekly Report. For LRS too I rote that I have reduced my holding considerable. Today I did pick up some other Li, waiting to see how LRS does next day or two to get back.
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So what may happen tonight? Yesterday US indices eased a bit but Russell 2000 did better. SP 500 at 5218, falling 0.3%. Russell always seems to do better on down days, I think reason being punters take out from big tech stocks which have had massive runs and try their luck here. So its catch - 22 for us. We don't want markets to tank, as that will create a weak sentiment. But slight fall seems to be good, a rotation into resource/risk stocks. ALB at critical level of 118. It has to be in green or hold this level, else another uncertain phase could come in play. Although anything can happen on a weak sentiment, odds are not bad at this stage that ALB may at least hold, if not get to 120s. Will that happen? Lets hope so. All the best.
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