$NEAR This drop— I don’t want to talk first about how much it fell. I want to talk about how it moved. It was pushed down from 5.6320 all the way to 4.3000. Trading volume was 1.443 billion. The key is that during this whole process, trading never really stopped. What does that imply? The sellers weren’t stunned by a single sudden plunge and rushing out the door; they were leaving in an orderly line, in rhythm.
Panic-driven selling and orderly withdrawal look different on the chart. The former is a cliff; the latter is a slope. This time, it’s a slope.
So the question becomes: as the move continues, will those who have been on the road stop near 4.3000? Usually, the side with a plan wouldn’t just stop at this point unless there are clearly better reasons for someone below to take over. So the one thing to watch next is this—around 4.3000, will there be large-scale buying, or will it only be occasional, someone picking up a bargain as they go? The former would suggest there’s still a second half to this story; the latter would just mean people are tired from the drop and need a breath.
#NEAR
Panic-driven selling and orderly withdrawal look different on the chart. The former is a cliff; the latter is a slope. This time, it’s a slope.
So the question becomes: as the move continues, will those who have been on the road stop near 4.3000? Usually, the side with a plan wouldn’t just stop at this point unless there are clearly better reasons for someone below to take over. So the one thing to watch next is this—around 4.3000, will there be large-scale buying, or will it only be occasional, someone picking up a bargain as they go? The former would suggest there’s still a second half to this story; the latter would just mean people are tired from the drop and need a breath.
#NEAR