LITE is at 846 now; it touched 895 yesterday and then went soft.
Coming up from 768, it gained 16 points in a day—the chart does look really aggressive. But now it’s back at 846, and on the 15-minute chart everything is hanging under the moving averages. You can clearly see the momentum of the rise shrinking. The last two 4-hour candles are also red; after coming down from the high, it hasn’t been able to stand firm.
In the order book, buy orders are 3.5 units versus 6 units on the sell side—bids are thin to the extreme. Open interest is also falling; over the last 7 hours it’s down by nearly 3 points. When it was pulling up, people chased it, but once it pauses there’s no follow-through. Trading volume has also shrunk a lot. With this kind of structure, price is very sensitive to sell pressure—once you tap it, it breaks through. Nobody wants to take heavy positions at this level.
The whales are still adding longs though. Their position is up by 8 points, and the long/short ratio is 3.38. But price is rising and they add; price is falling and they still add. In this spot, who is taking over for whom? I really can’t make sense of it.
It’s still just waiting for new money to come in and take it over. The card has been played—if nobody follows, then it’ll grind like this slowly, grinding into the next story. Same old script.
#lite $LITE