Today was a good call from yesterday’s game plan. Today was the largest move in a while, -$0.07 or a whole -0.67%! Still anemic volume.
Here is today on the 15 minute chart. I decided to do a full analysis today because something that may be significant happened. I have been saying that something needs to happen to get the volatility going. Two days ago I mentioned one way would be a takedown to entice buyers or sellers. I think that happened today, but no buyers or sellers were found.
For the first 1 hour 45 minutes today it slid. It fell about $0.17, which is huge considering the movement lately. It was all on very low volume. After the take down it recovered through the day to close down only $0.07.
Here is today in the context of the last five days. Look how low the volume has gotten. There has been little movement because there is little interest. I decided to do a full analysis because today looked like a low volume test. The lower wick that ended in a hammer shows it. Also, the orange line above is the top of that trading channel from a while back. It looked like it tested that to see if sellers would show up.
If that was a test, it was successful. It also means that MM’s maybe ready to make a move to get it going. Hence, they tested for supply before marking it up. They don’t want any sellers coming in and ruining their mark up by driving it back down.
Here is the weekly. Everything here still looks good, except it’s moving in slow motion. So far, this week is looking a lot like the daily as a low volume test of that upper channel line. We will see if it stays that way over the next two days.
tomorrow’s game plan
We didn’t move much today, but I think it was a significant development going forward. Today looked like a low volume test of the upper channel line. If it was it would indicate that the MM plans on doing something soon. I would expect tomorrow to be either more testing, like today, or if the MM is satisfied, see some volume coming in with a larger price move up.