Another interesting TA interpretation ... again accompanied by the caveat that I am an absolute newbie at this TA stuff.
Anyway, it's postulated that since a stock's OBV chart reflects total volume of all transactions, large and small ... it necessarily lumps together both the supposed smart buyers (institutions) and the retail buyers (small lots).
And that the MFI chart, which weights according to the size of each tic as well as to whether the tic was up or down, reflects primarily institutional buying. (A true DAV chart would track only transactions larger than a specified size, but I haven't got that one programmed yet.)
Anyway, the OBV and MFI charts for IMNR diverge in a way that suggests that smart money has stayed with IMNR (and not just rushed back in, either) while the retail money went chasing off to do other things from time to time.
Specifically, the recent price and the last two peaks of IMNR prices were all about the same value (roughly). But the MFI indicator shows that institutional money has increased by roughly 50% between the first peak and today. Thus these dips really were just magnificent buying opportunities (glad I did so, but it was purely by accident).
Squinting at the chart another way, since June 11th the OBV has dropped by 30% ... retail investors taking a hike ... while the MFI has remained relatively constant (institutional investors staying the course).
What made this analysis possible was finding a source which will dynamically plot MFI, OBV, and stock price on overlapping traces. I found a java applet which can be downloaded at neural.com
Happy Due Diligence!
JSb. |
