Thanks Tangible! Yes credit to the long term holders and FAs because I only thought about this strategy of the smart money after reading parts of the other threads. The FA and TA seem to be tying together nicely and usually when this happens there is a highly probable positive outcome. I still have to read the other threads properly for research.
Firstly when I say accumulation I mean they are buying many parcels of shares everyday until they get their fill. This is in order to test the market liquidity and selling\buying pressure as they go, but it is mainly to get their full holding in an inconspicuous manner.
They undertook similar activity last year in July right before the 14th July 2014 announcement;
14/7/14 -Announcement: Outstanding Intersections from Epanko Graphite Assays
Prior to this announcement, on the 9th of July there was a 1 share traded close. It is the red candle shown by the arrow in the image below. The candle was at the bottom of the range so they know that people may start buying again.
Today we saw another 1 share traded close.
You're right, it's all about the weak hands. The manipulators forced the share price down throughout the day and made sure the share price close low. It could have been the buying and selling of their very own shares as you mention to get the share price to go down. This is in order to scare away retail traders throughout the day and take their shares.
They are hungry for more shares so they utilised the 1 share traded trick. It is where they basically set their algorithms (computer programs) to input orders during closing auction. This is so that the existing orders will be matched up in a way that only 1 share (out of a bigger order) is traded at the lowest price right on the closing buzzer. The utilise this one share trick for various reasons but the ones I see here are;
-> It scares other retail traders who submit sell orders overnight (probably at the current buy price of 20c), their target price. They then gobble up all the shares in the morning.
-> Sometimes it puts their (smart money) buy order at the start of the queue so if anyone puts in a sell order overnight for 20c it automatically gets matched to them.
-> I think they have visibility of market depth before market open so they can just put in more buy orders to grab all cheap shares which were from overnight sell orders.
I don't think the announcement will be tomorrow but there is a chance it will be this week. I think that they will accumulate up until the announcement, then assess the situation but most likely hold on to their shares and enjoy the ride up as they did last July.
By the way, they may be reading this, so hopefully they don't try and change the plan because they want to surprise us.
(20min delay)
