Yep volume and the spread (High and low of the bar) is the key to the markets. KNL currently in the doldrums and the volume tells the story. $91K traded today, that tells you the big guys arent interested at the moment. Your previous high volume bars have all failed, IE the price is now below those bars, therefore they contained hidden selling.
However you appear to have support at the 16/ 17 cent level so provided the price doesnt break 16 cents on large volume you should be fine. Of course there always is the dreaded shake out designed to hit stops. Can look like the world is caving in but if the volume is high but the bar is short, thats your que to get in, with stops set of course.
Remember strength is seen in down bars and weakness is seen in up bars.
My opinion KNL undecided at this level, if youve held down to here for a loss I wouldnt sell unless it breaks 16. However I wouldnt buy in yet either if i was watching. Good luck knl'rs.
JMHO DYOR.
This in my opinion is what your looking for, forget the company its irrelevant. Its just the bars we are looking at.
KNL Price at posting:
18.0¢ Sentiment: None Disclosure: Not Held
