Medtecs Intl had been suffering major selling since a few days back it gap up at the top where the price was strong while the quality of the demand decreased. It was that gap up that many buyers look to take profits and soon after, the stock collapsed heavily which raised some questions from SGX. The price continue to sell down today but I saw more panic sellers than real sellers. It could be flushing or it might be just short covering taking place.
Rex Intl released some good news today and soon, the stock also suffered some profit taking as seen from the Top 30 Volume. Study the 5 minute chart for Medtecs, there was no gap down, however the steep sell down could be real panic throwing from the late bulls which big players might be absorbing. So what's a panic throw down? It's a process where the retail investors throw the white towel at the bottom and gave up while the real buyers scoop up the shares at wholesale price in view that the stock can trend higher. Let's see how far more it can go.
Update: 17/7/2020, 10.21am
Some panic selling at the bottom and Medtecs Intl indeed has some buyers scooping at the bottom where prices touched 0.575 after my blog post!
Ronald K - Market Psychologist - A Stock Market Opportunist
