Capping is a process market makers use to keep share prices in a narrow range whilst they accumulate stock.
Which is a wonderful thing if you are aware of it as the stock been accumulated means it is eventually going to be force higher.
Obviously you have idiots on here complaining about capping when a stock is falling, which is really genuine selling. Essentially they just stuffed up and can't face facts.
Stocks go through regular short term periods of activity where people are interested and buy or sell etc.
A capper wants to buy stock and does so buy buying when the stock is dull and buys what they can when the market is low, once a rally starts they sell some of the stock back to the market to soak up the demand so the stock eventually goes back down and remains dull while they accumulate.
Obviously their eventually comes a time when to much stock has been accumulated and the stock can only go up do the general daily demand or when the capper has enough stock and no longer puts out the rallies.
Its manipulation of a good kind if you can pick it out.
HAW around 4c to 3.5c is a possible example of this.
Provided that stock does not break about 3.2c I think it is that stock could be a real winner.
Remember this though:
- A capper will make the stock price dull and boring and you might get annoyed with it and sell out - don't - When the stock breaks out of its range really buy here - When the stock shoots upwards don't get sucked into the companies story, its just manipulation and you should sell out when it rises verticle for a few days/weeks depending on the time period.
