Analysis Help?

[ReynaFan 10]

Not sure if this is the correct forum; move if necessary.

 

I'm seeing something that I've never seen before and I'd like any ideas on what to make o it. Look at the price and volume chart 2 min for zagg for the entire day for the last three days.

 

What's going on?

 

Thanks,

David

[djohnsonhot 10]

I do not trade short-term charts...only 5, 15, and 30 for day trades and longer term for options. What are you seeing?

[MadMarketScientist 11]

I looked at it and not seeing anything that looks different or jumps out at me. Maybe post a screenshot image so we can see what you're seeing. Thanks.

 

MMS

[ReynaFan 10]

I apologize for not posting the screenshots. I'm such a rookie that I don't have a good charting service. I use google and draw myself. I was looking to see if if there were clues indicating money was trying to build a position. I'm long with calls but many of the technicals were showing a continuation of the bear trend (I could explain my contrarian position, but that's not the point here). Here's what I saw:

 

1. Tue Mar 29: stock was slowly continuing down trend with very little volume all day long. In last 30 minutes of trading or huge spikes in volume with prices driving up to close up for day near/at high of day.

2. Thur March 31: repeat exact same pattern

3. Fri April 1: repeat exact same pattern and I post question

4. Mon Apr4: stock opens up, continues increased volume for day, and closes up 4.32%

 

Now my question is, what are the signs of institutional money building a large position over a small timeframe?

 

Thanks for your patience with a noob.

 

David

[MadMarketScientist 11]

There are people far wiser than me when it comes to determining what looks like institutional investments. Obviously some of the basics you're saying indicate some buying/accumulation with strong closes on volume.

 

I'm more of a straight technical trader since I have never really seen how to get an edge trying to determine what you are.

 

For me my two buy points here would be the break of $8.50 on an aggressive and $9 on a more conservative - and not looking for a huge runner just breaks above $10.

 

MMS

[ReynaFan 10]

So that's the sad part: I use more technical analysis than fundamental, and that's not obvious. I'm learning...Any way, a few days after all this, a major partnership was announced. The after hours spiked enormously, but the day session rally didn't sustain.

 

It seems more and more like institutional money is building position, but for some reason, neither the price nor volume is reacting as I would've guessed (with my ver limited experience/knowledge).

 

It will be interesting to continue to watch. FYI- My position is working as I had planned, but not with the same characteristics I had pre-supposed.

 

David