Buying at support; a healthy pullback vs a violent plummet; market makers & dilution.. ticker analysis on CBIS, KERX, PGLC, SEFE, HBRM, JOEZ, BFHJ, IVAN, ATYG, EFIR, SNPK, AZO, CLNT, MOTR
Here are the questions in text format (italics represent Stockhaven’s words):
1.) What is the best way to quickly determine whether a stock will bounce off of support or just fall right past it? It seems like if a stock bounces people buy quickly (for instance when SNPK bounced off .85 today on the dip) and its hard to get in at the support level because it upticks so fast, on the other hand if it falls below support then it downticks quickly. Also, along those lines, is there any easy method to determine whether a stock is dumping (like an aps promo) or just taking a dip?
volume & price action — your eyes and ears into what a stock is thinking
if a stock pulls back towards support (i.e. an area where you expect there to be demand) and it does so on low volume (low supply) then you can assume demand will be greater than supply at that support level, thus causing a bounce
vs. a pullback on high volume (high supply) towards an area where you expect there to be support (or demand) then the supply/demand equation will have a harder time being strictly in favor of the demand side
supply/demand — imbalances in this equation is what causes up moves and down moves and bounces and sell off’s
level 2 also helps you determine if a stock is going to bounce at support ^^^ the video outlines that
2.) A question I hope you can put some light on. Some MM’s will show on L2 with a sell amount of 5000 (typically this is Etmm or VERT), which when on the sell, these figures are often 1.5 mil or better. Most MM’s will show a legitimate amount 25k=25k or reasonable amount. How can it be the ETMM buy at 5000k=5000k, but his sell at 5000k=1.5 million? VFIN, VERT, ETMM and maybe a few others are like this. It makes it virtually impossible to make a purchase on a breakout stock when these are not real figures. I made a purchase today, VERT appeared with a small sell of 5000, 3 times it plays out over 1.5 million each time. Stock never bounced
VERT will show up on the ask for 5,000 shares… and then 100,000 shares will trade at the ask and VERT doesn’t move.. what’s going on here? dilution
when MM’s like VERT do this on a stock, it doesn’t mean you can’t play, it should means there needs to be even more volume in order to overcome it
ATYG vs SEFE — both of these experienced what this question is referring to, but SEFE was able to overcome it b/c it has higher volume
- CBIS* – can we close above $0.20? if so that bodes well… let’s see a breakout above $0.17 with more than 3.5 million shares on a 15 minute chart
- SEFE* – needs to get above $1.20 and stay there
- JOEZ* – solid chart, key resistance @ $1.50… key support $1.30-$1.35
- EFIR* – on watch.. needs to break $0.002 high.. resistance: $0.0025/.003/.0039.. support – $0.0014-.0015
- SNPK* – can it put together it’s first 4 day winning streak of the promotion? that would signal a strengthening of the trend
- MOTR* – resistance @ $1.45/$1.52/$1.65.. support @ $1.33/$1.27
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