I, too, am a firm believer in watching closely the accumulation/distribution trends.
But as hard as I squint, I don't see much accumulation (OBV) being shown for BYX across the past 12 months (unless you refer to the slight upturn since March 1st).
206.146.143.80
Rather than OBV, I prefer to watch Money Flow (MFI) which is quite similar to OBV, but takes into account individual trades during each trading day in order to arrive at its "indicator", rather than attributing the entire daily volume to a "plus" or a "minus" based on the last trade of the day. With NASDAQ and other thinly-traded stocks, this sometimes helps cut through the camouflage of market maker manipulations and painting the tape.
Here is the MFI chart for BYX over the past 12 months:
206.146.143.80
This suggests that there are some very steady and very patient holders of BYX, as the measure of net flow in or out has remained relatively stable since mid-April (when the price was in the $7's and $8's). Some might call this a classic buying opportunity -- the chance to buy for $4 what somebody else was willing to buy and hold for $7.
Similarly, for a current long, any deterioration of the MFI line at these prices would suggest that somebody's patience has worn thin and that there might be some selling pressure to drive the price still lower.
Voluntary disclosure: I have been in and out of BYX several times, profitably, and am considering getting back in again soon at roughly these prices.
Happy Due Diligence.
JSb. |
