Shakeout tell you that there’s demand for shares. It is a good thing to see on charts, and at times, they can be buying opportunities. Shakeout pushes the supply of readily available shares from the hands of the weak into the hands of the strong. Then the stock immediately turns and rushes higher, often within just few bars.

Based on Unisem daily chart, TradeVSA have spotted lots of shakeout bars during the accumulation and re-accumulation stage. The shakeouts are illustrated by the Spring (SP) signals. Notice the Spring bars dropped below the support with high volume to flush out weak-hand holders before Smart Money mark the price higher.

Using Volume Spread Analysis method, we notice that Smart Money tried to shakeout the weak-hand holders again on 7 December 2018. Currently it offered a very low risk trading opportunity as the price is close with support level and hidden potential buying area.

Stop Loss = RM3.14

1st Target = RM3.30

2nd Target = RM3.41

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