OK Sometimes when a stock has traded with no real interest for a...

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Jako8557

19,112 Posts.

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20/03/18

08:40

Post #: 31874791
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Originally posted by mirren ↑

Thanks Jako It is a biotech stock so in my mind has been a sleeper for a long period - that is why I was looking far into the history - the volumes that have appeared recently are ridiculous - and have not been seen since Aug 2013 -
I anticipate that the climax of the recent frenzy are now worth looking back on if only to see the buy in and then the selldown - which would perhaps be now - just highlighting the activity of the volume -where it enters and exits -
IF indeed at this point we were to see higher prices with supporting volume I would be surprised - I guess that is what I am looking at -
I will continue to watch the fallout - the volume spikes are what are of interest to me - I realise that we can't predict these things but the appearance and clear exit are of interest to me to keep pondering -
You are right in saying that one should be wary - that is what I am looking for is the hallmarks of sudden volume entering and exiting - and perhaps what happens next -
It may just be one of the issues that we suffer in the spec end of the market - that is what I am trying to understand better I guess LOL in out raise dump ? good to study how those moves play out if your gonna trade them

Cheers Jako as always you give me so much to think about -

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OK

Sometimes when a stock has traded with no real interest for a long period, and then comes up with an unexpected reason to attract buying, there is a scramble for stock. During this period it allows stale trapped holders to sell out from previous higher levels, which can provide important liquidity to the market.
There is a point however, where the strong buying will push price too far against the buyers, and short term, day & momentum traders in particular can get caught at the highs, and have to sell - often back into the hands of the longer term traders, who had stepped back from the now much higher prices.

cheers
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