A shakeout or Spring signal in Kobay Technology (6971.KL)
A shakeout or spring is a drop in the price which takes it below the lows of trading (stage 1 – accumulation). It’s usually the last attempt of the Smart Money to acquire shares at cheap prices before the mark-up move. Creating selling pressure forces weak-hand holders to think that the current trading range will end in the mark-down movement and exit or reverse their positions. The Smart Money waits for breakout to create enough liquidity and then rapidly covers all available supply resulting in price getting back into trading range.
Currently Kobay is trading above the Spring bar (12 October 18, 12:30pm). This is a sign of Hidden Potential Buying from the Smart Money.
Disclaimer: This information only serves as reference information and does not constitute a buy or sell call. Conduct your own research and assessment before deciding to buy or sell any stock.