The 15-minute line of $MAGMA shot straight up, +18.6%. Volume surged to more than 3 times the usual level, and by the close it had even broken through the upper range of the last 20 five-minute candles.
But interestingly, OI did not rise along with it; contracts actually shrank by 1.49%. This kind of price-up, position-down structure looks more like shorts covering than new longs driving the move. In other words, the sustainability of this rally is questionable, so keep an eye on it.
Looking at the order book, aggressive trades were lower by 6.8%, with buy-side slightly dominant, but not overwhelmingly so. MAGMA has now reached the vicinity of its own historical extreme range; it ranks #11 in overall anomaly level and #8 in notional change, which is indeed eye-catching. However, chasing at this level is easy to get punished.
Best to observe for now and wait for a pullback confirmation before saying more. Don’t mistake short covering for a trend reversal.
But interestingly, OI did not rise along with it; contracts actually shrank by 1.49%. This kind of price-up, position-down structure looks more like shorts covering than new longs driving the move. In other words, the sustainability of this rally is questionable, so keep an eye on it.
Looking at the order book, aggressive trades were lower by 6.8%, with buy-side slightly dominant, but not overwhelmingly so. MAGMA has now reached the vicinity of its own historical extreme range; it ranks #11 in overall anomaly level and #8 in notional change, which is indeed eye-catching. However, chasing at this level is easy to get punished.
Best to observe for now and wait for a pullback confirmation before saying more. Don’t mistake short covering for a trend reversal.