MSB Trading - 2020, page-369

"Why do we gravitate towards particular ranges and prices?"

Interesting question@Armyne - the psychology of share prices has always fascinated me.

Take for example share consolidations, where a company might take 5 shares and consolidate into one (usually to get a higher share price for, say, NASDAQ compliance or to reduce the number of shares on issue). History tells us following consolidations the price trends back down to the previous level - almost as if the "market" has a preconceived view of the "right" price.

The reverse tends to occur with share splits - the price often trends back up to the previous level.

I've seen this with many companies, although I'll freely admit my analysis is more anecdotal than rigorous!