As volatility increases you often need to decrease the time...

As volatility increases you often need to decrease the time period of the charts you are using and for HIO it was prudent to move from hourly to five minutely today given how much the price was surging this morning, then dipping, rebounding before capitulating.

The break below $1 then back above $1 was always going to result in one of two things... a higher high (>$1.08) or another falter and if that occurred it was likely to accelerate downwards given the price was nudging overbought territory on most of the technical indicators and we hadn't seen a significant correction up until then.

On the five minutely chart you can see that as the price is recovering between 11:30am and 1:30pm the Bollinger Bands really tighten up, which indicates that volatility has decreased significantly from the first 1.5hrs of trading. A nice little uptrend starts forming so it gives the impression that the price is steadily increasing and seemingly on the way to a higher high (it hit $1.07 around 1:30pm).

But as you can see on the RSI there is some very clear bearish divergence that indicates underlying weakness in the price momentum and once that initial sell pushed the price below $1 again that created a very clear technical "sell" and looks like a number of other traders picked up the same signal hence the much bigger slide:



The other thing that also really stands out is the amount of volume that triggered the sell off versus the amount of volume that went through when the price reached the low around 67c:

* 1.28mil share sold to initiate the slide around $1
* 3.37mil shares sold (but also bought!) around 67-68c on the low

There is clearly a lot of hidden support for HIO that emerges on any weakness so if the above "is" an orchestrated move down someone has been able to use that to great effect to get their hands on a much bigger bundle at a much lower price!