A quick intraday trading update as today was very interesting......
For most of the day, the stock traded very nicely with good buying in the 60 zone. There was one seller (as mentioned, we have our share of silly technique, who hit 58 with ~ 378,065 shares) Worth noting that this is one seller being the catalyst for shaking a few more out.
The VWAP is only slightly down on Friday. No where near the closing price differences.
This is an Equivolume chart from 2 pm onwards. The way this works is that the wider the candle, the more volume was traded in that time period.
So that gives a "weighting" to the action. What is interesting here, which is hidden by looking at standard charts, is that after that capitulation sell, the SP got some strong buying volume back up to 57.5. The closing auction pipping the SP down to 56.
While the strategy of that larger buyer at the 60 price point is intriguing, and the market maker was flipping around a bit, I think the damage was caused by amateurish and poor selling technique.... largely one player.
Again, I think the closing price is not indicative of anything more than this. It certainly is not a gauge of sentiment across investors - it is a gauge of how
one or two people traded.
Worth remembering that millions of shares (20m + is my guess) have been bought by a serious player/s driving the price up over weeks - while today the sell volume is a tiny fraction of this. Remembering that the VWAP is
58.4.
