Thought I'd post this over here. Maybe somebody will be following V.TKR.
RE: Up $0.17 to $0.58. why?
I gots to wondering about your question and did some thinking about why this happened. My first thought was that some naive investor like myself just put in a market buy order and had to reach up to $0.58 to get a fill. But then about two weeks later, the stock sold off to $0.23 on about 1000 shares if I remember correctly. This scared me at first, but the stock quickly recovered into
the $0.30's and now the $0.40's on higher volumes. In my mind, these trades were orchestrated to paint the charts a little and to allow for further accumulation.
Here is why I think that way:
I just recently started to learn about technical indicators and discussion around bollinger bands tweeked my interest. I would guess that the reason it ran to $0.58 on 500 shares was for precisely the same reason it sold off to $0.23 on 1000 shares. Other than those two small trades, this stock has traded the majority of its volume between $0.35 and $0.45 over the course of 1999.
Normally, when this happens, the technical indicators would be showing major accumulation. The indicators still look good for V.TKR but I suspect, they would look a whole lot better if the two trades at $0.58 and $0.23 were dropped from the calculations.
Specifically, the bollinger bands for V.TKR would have converged to the average long ago if the two small orders did not go through. The two outlayer trades however, have caused major divergence in the bands to "shut off" the indicator.
I do not understand the mathematics behind the bollinger band concept, but I am starting to learn how they are used. The are used as a tool to generate buy and sell signals. Convergence of the bands (which should be happening with V.TKR) indicates the stock is about to go on a MAJOR breakout, either to the upside or the downside. A downside breakout is unlikely with V.TKR because
the stock is already trading below its cash breakup value.
Therefore, a breakout to the upside is most likely and it should be a good one if my interpretation of how the bollinger band works is correct.
This is very simplistic and likely way off base. When I reread my post, I feel I've left something hanging. I would appreciate hearing from someone with more TA experience in this regard to correct me where I've went wrong.
Don't listen to me though. I'm a novice investor.
Rise
|
