Day Trading & Forex Forum

jonboy123

hi, just an observation (by a newbie, sorry if im talking nonsense).
AUTONOMY
(AU.)

this company had good news reported on early thursday.
So people would assume rising share price, so BUY.
Wed closed at £13.35
thu opened at £13.58 (high compared to previous days close)

and during thu the share price dropped gradually hitting around £13.23

the company is overall trending upwards.

maybe the shortsellers pushed the high opening price down during the day?

So good company news which pushes the share price UP initially, was a good short selling opportunity, during this day.....

so the bearish short selling was more powerful than the bullish buying on this day?

am i thinking valid thoughts?

jonboy123

here you can see wednesdays close....and thursday chart....

Attached Thumbnails

 

jonboy123

good news reported wed and early (7.30am) thu morning


tues close £13.26
wed close £13.35
thu close £13.57

only 2p increse over wed and thu.
but massive diff in opening and closing on thu...... short sell opportunity as price dropped during the day.

(7th april... bigger price decline....ahhh....candlesticks = dark bars = short sell opportunites....)

KillPhil08

Gap close.

Buy the rumour sell the news.

If is was unexpected profits it might rise, otherwise it's as expected so will go back to equilibrium.

This question reminds me of "why did the share price rise when they had job cuts?".

jonboy123

gap close?
i dont get what you say.
sell the news? you mean good news = short sell...?
are my points all valid and informed?

KillPhil08

search bar top right.

jonboy123

cmon people...any more thoughts?

Bolimomo

Price drop after company releases good news is typical. Only sheeps buy into good news releases. You see: people who "know" about the pending good news have already told their "friends", who in turn told more "friends". A few days before the good news release, those in the knows are already in-position. Traders follow the chart movements. Some good traders probably have already picked up on "something is up". When "good" news finally hits the wire, it serves only one purpose: to attract the unsuspecting masses, the general public, the newbies. They are the ones who walk in to the slaughter house to provide liquidity to those who were already "in position" for a quick profit.