Wyckoff trading method, page-694

Hey Jako

Certainly some significant changes in dynamics with a remarkable market reaction to what was "an very large capital raise".
I found the markets response somewhat surprising, in terms of the demand that backed such a price spread and close just off the weekly high.




At point C the Insiders ran it all the way down shake those buyers whom bought from A, B and D, and with the above average volume they would have been happy with the weeks result. Interestingly however, demand overwhelmed supply and that was a strong sign of strength. If I had seen this bar over the weekend, I would have been looking for entry on Monday at some stage. Would need to drill down to the daily to work out when and at what price to load up on. Those last two weekly bars before that breakout were telling, with the last close before the breakout just above supply, which when combined with the week before and its close around the potential supply zone, seemed like absorbtion. Then bang off it goes and apart from day or short term traders taking profits before the weekend, that bar and associated volume would have been a rewarding effort.



Those daily volumes are significant on bars 1-5 and certainly look to me like there was even some fear of missing out from buyers suggested by closes off days highs. Either way whatever the stock, the market had a large appetite so far. Certainly bar 5 from a shorter term perspective contained a fair bit of selling, but again as it was a Friday, short term traders were locking in their profits. I have given myself plenty of room with my stop as described in the chart comments. From a TA perspective there is so much strength shown, that if the Insiders were still expecting further gains, a coordinated raid lower/shakeout would not be surprising to see shortly.

Much appreciated Jako.....

Cheers
GF