On 16 May the volume was more than 90 million shares. Was that a day of accumulation or distribution?
Distribution!! A massive dump!
Let me explain using VSA.
On 16 May the spread of the candle is 3 cents with a volume of more than 90 million shares. If the volume represents effort and the spread represents result, does the effort produce a decent result? To answer that, we need to use data from a previous day for comparison. Let's use the data from the previous Friday 9 May, whose spread of the candle is 8.5 cents with a volume of about 30 million shares.
Now, if 30 million shares (effort) could produce 8.5 cents (result), then 90 million shares should have been able to produce at least 24 cents. But on Friday 16 May, 90 million shares (effort) could produce only 3 cents (result). That is too much effort for very little gain. That could happen only if the selling pressure on that day was more than matching the buying pressure. And that was the case; a massive dump!
LTR Price at posting:
63.5¢ Sentiment: None Disclosure: Not Held
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