As many here know I follow Infinera very closely. I’ve also recently taken to study its chart: highs, lows, volume, candlesticks and all that. There’s a whole other world of theory on price analysis that I have been studying and won’t get into since our board is not about that, but, I will say what I believe is true. The stock has steadily gathered strength and interest over the past 2 weeks, and it is on the verge of breaking out - as soon as tomorrow - or this morning if you’re waking up and reading this.
For a while it has been a battle between the sellers and buyers after earnings were released. People holding long losses were anxious to sell and would knock the price down as soon as it tried to climb up. Battling against that were the interested buyers looking to grab a great deal. It has been back and forth throughout the day, but usually closing up on most days. The buyers were starting to overpower the sellers, and when that happens they usually try to take a break the next day and wait for more weakness.
Of these buyers, after studying the price action over these past 2 weeks, I believe there to be two types: Those with short positions looking to cover and institutions with a slightly longer view. Both types of buyers look to capitalize on weakness. These buyers are professionals, and they are patient.
Well tonight, as the market was winding down its day, patience started wearing out. Scores of trades, at the days high of 15.80, were exchanging hands. In fact, the closing price ended at the days high, and the same price extended into after hours trading. No lows and no highs - just that same price.
The after hour asking price eventually came up to 15.93. That stopped the buying frenzy, for now. These are professionals and they are patient, after all. There’s always some weakness to be had the next day - if you let it.
P.S. I’ve beens studying some of the stock favorites discussed on the boards using the price/strength approach taught to me offline by one of our board followers, and I can say that SWKS has also been consolidating recently (buyers starting to overpower the sellers) and is looking to break to the upside soon. SKX has already done so (as of last week). LGIH made a break above its normal trading range just today (after spending about 1-2 weeks there). CASY is also staging a recovery and up trending again. DY is doing the same after a mild outburst to the downside. SEDG just started its up trend. CASY, DY and SEDG are not out of the woods yet, so you know. In fact none of these stocks technically really are according to their moving averages, but, they have been gaining strength off of their recent lows, and that momentum is what causes the moving averages to change.
P.P.S. I know this post does not add anything of value based on fundamentals or market news. What I’m relaying is all based on volume, strength and price action - an aspect I’ve not paid much attention to in the past, but coming to appreciate. At the very least, it is information I suppose. I hope it helps.