Position and price divergence generally falls into three types. This time, $AKE saw rising open interest and falling prices (24-hour open interest: +17.91%; price: -8.96%):
Rising OI, flat price: Long and short positions are both growing, building momentum; volatility may increase later
Rising OI, falling price: New shorts may be entering aggressively, but if short positions get too crowded, a rebound could catch them off guard
Falling OI, rising price: The rise is likely driven by short covering; its staying power depends on whether new money follows through
Open interest is currently around $9.74 million. What confirmation are you waiting for before entering?
Rising OI, flat price: Long and short positions are both growing, building momentum; volatility may increase later
Rising OI, falling price: New shorts may be entering aggressively, but if short positions get too crowded, a rebound could catch them off guard
Falling OI, rising price: The rise is likely driven by short covering; its staying power depends on whether new money follows through
Open interest is currently around $9.74 million. What confirmation are you waiting for before entering?
