Hesistancy, 23 May 2023
🖼 Daily Technical Picture 📈
➤ Yesterday I discussed the potential bullish narrative resulting from a "re-accumulation" phase. Today I'd like to explore the bearish narrative in the form of "distribution".
➤ Distribution is the result of Whales reducing or selling out of their previously accumulated positions. Obviously, they wish to get the best price when exiting. This can be done by drip-feeding sells as prices push higher. The last buyer is normally the retail investor who is late to the party. Once the initial rush of retail buying starts to dry up, a consolidation forms where the demand and supply is largely balanced. This is where Whales start unloading larger positions helping to keep a ceiling on the price.
➤ Looking at the current price action, we can either view it as a re-test of the breakout (bullish scenario) or it is "hesistancy" - hesitancy at the resistance (yes I made that word up). It may result in the price reversing back into the range (an "upthrust" action). This could signal the stage of the distribution phase at which Whales start dumping the remainder of their positions indiscriminantly as retail buyers dry up. The result is a quick cascading fall.
➤ This hesistancy has forced me out of my long position for a minor loss, one of the outcomes I outlined before. My trade signals can be very sensistive even to minute price movements. I hold a small remaining short position as part of the secondary strategy.
➤ Conclusion: 🐆 So is it accumulation or distribution?
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
➤ Yesterday I discussed the potential bullish narrative resulting from a "re-accumulation" phase. Today I'd like to explore the bearish narrative in the form of "distribution".
➤ Distribution is the result of Whales reducing or selling out of their previously accumulated positions. Obviously, they wish to get the best price when exiting. This can be done by drip-feeding sells as prices push higher. The last buyer is normally the retail investor who is late to the party. Once the initial rush of retail buying starts to dry up, a consolidation forms where the demand and supply is largely balanced. This is where Whales start unloading larger positions helping to keep a ceiling on the price.
➤ Looking at the current price action, we can either view it as a re-test of the breakout (bullish scenario) or it is "hesistancy" - hesitancy at the resistance (yes I made that word up). It may result in the price reversing back into the range (an "upthrust" action). This could signal the stage of the distribution phase at which Whales start dumping the remainder of their positions indiscriminantly as retail buyers dry up. The result is a quick cascading fall.
➤ This hesistancy has forced me out of my long position for a minor loss, one of the outcomes I outlined before. My trade signals can be very sensistive even to minute price movements. I hold a small remaining short position as part of the secondary strategy.
➤ Conclusion: 🐆 So is it accumulation or distribution?
EQUITY TREND:
⦿ Short-term (weeks) - UP
⦿ Medium-term (< 6 months) - UP
⦿ Long-term (>6 months) - DOWN
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✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
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Not Investment Advice
✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
Penafian
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