The market pays me well thanks Greggy, I help you out for free
In the absence of a negative change in the company funnymentals or deterioration in the overall market conditions, the evidence is mounting that there's pretty much no one left willing to sell down here, just the odd straggler who got caught buying fomo the other day or someone trapped from higher, thinking they missed their chance to get out at breakeven finally capitulating.
If no one sells down here Greggy, what do ya reckon happens next?
Markets/stocks move on supply and demand, sure funnymentals influence that but it's not what moves them. While there's no method of trading or investing that is an exact science, you'd be amazed how lucky you can get when you can read that supply/demand balance on a chart
Minervini explains the basing process in his books and why you get volatility contraction across a base i.e price swings get smaller and volume gets lower from left to right through a base as accumulators weed out the weak hands. So the next swing up should be met with a smaller pullback and lower volume in that pullback as there are now fewer sellers sitting above after the last push up.
I'll be back with more lessons in the coming days/weeks Greggy, I hope you do your homework in between
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