medium · Volume Spread Analysis supply-demand-smart-money
Very bad news breaks for a major retail stock. Instead of the price slowly declining, the market-maker marks the price down rapidly at the open. Volume surges, but the price bar closes near the high.
What is the likely objective of the professionals in this sequence?
- To trigger panic among weak holders and accumulate stock at bargain prices.
- To protect retail investors from further losses by stabilizing the price quickly.
- To encourage short-sellers to exit their positions and move to a bullish stance.
- To signal to the public that the bad news is irrelevant to the stock's valuation.
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