what is a capper, page-4

  1. 491 Posts.
    tangrams,

    Great post mate, very well said and very clear.

    May I just add that many threads on here cry "Capper" when a share price is not performing as well as people would like and they all scurry for any excuse they can muster.

    Particular attention should be drawn the very often seen wall of "cappers" sitting at 10.5 cents, and above, in all too many stocks climbing towards the 10.0 cent mark. They can not be seen as cappers in my opinion as they are simply there to try and get the next 5% jump in profit as the SP breaks through the 10.0 cent barrier.

    If you feel a capper is at play, simply look at the market depth, the amount of sellers in the list and the obvious signs of 1 or 2 major sellers that have extraordinary sized share parcels sitting there.

    Also look at the price points above the perceived "capper" and see if there are any more large parcels on offer by a single seller.

    Then look for on the buy side to spot any "proppers" that are there to hold the trading gap in share price forcing the buyers and the sellers to exactly the same price level.

    Yes, cappers can work for you as they give you the insight to the favoured purchase price of the stock for accumulation assuming the capper is in fact real. When "they" have had their fill the capper will disappear but again, "they" have a lot more patience than we do.

    If the share price is being held and the volume is increasing then in my mind it's a buy. "They" may be able to contain the price but "they" cannot hide the volume.

    Sentiment indicating rising volume and accumulation with a stagnant or held SP is the perfect time to buy IMO.

    cheers
    kse3137

 
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