Thursday, July 5, 2018

Propnex - Lacked of Buyers

I was studying Propnex chart since it went IPO 4 days back with quite a number of interest. I wanted to see who's going to win the game, the buyers / sellers? To know who will be the winner, it's important to be patient and watch and not to take unnecessary trading actions since it's a IPO stock. After 4 days, I finally can conclude that the sellers were overpowering the buyers. The wave 1 and wave 2 were of different length and with a lacked of follow through in the buyers, the sellers were just waiting to lock in profits.

I remembered watching the stock on the first day of trading where it climbed so fast that the queue numbers were eaten up so quickly that the sellers couldn't have time to react during the first 30 minutes. Thereafter, there was this unloading action that the price came down real quick that buyers couldn't cope which indicated some heavy profit taking going on. Soon, buyers slowly disappeared and did not support the stock much and as of now it's reaching the opening price of the IPO day. I am not sure if this stock can run again but I will study the waves.

Ronald K - Market Psychologist - A Stock Market Opportunist