(FRIDAY) Market opened at 2.690 and maintained above this level for the remaining part of the day. Trading volume was high in the beginning and a huge transaction was made right before lunch (almost 5,000 shares) at 2.69. Price met heavy resistance at 2.71 and finally fall back to 2.71 and closed. Buying and selling volume are almost equivalent.
(THURSDAY) Market opened lower at 2.74 from yesterday’s closing at 2.76. It stumbled to 2.69 at 1140hrs and was hovering between 2.69 and 2.70 for the most part of the afternoon. Buying volume was exceptionally high. For the past few days, buying volume and selling volume has roughly been the same.
7th July 51.8K (Buy) over 10.2K (Sell) Closing Price: 2.62
8th July 56.2K over 64.3K Closing Price: 2.64
9th July 44.2K over 43.1K Closing Price: 2.66
12th July 34.3K over 26.5K Closing Price: 2.66
13th July 47.5K over 50.6K Closing Price: 2.74
14th July 30.5K over 27.1K Closing Price: 2.76
15th July 37.6K over 16.6K Closing Price: 2.68
Contracts are filled up to 10,184 at 2.72, but the day closed without even reaching above 2.70. I foresee tomorrow’s opening will start trading at above 2.72.
Bid and Ask Volume
The reason that it is possible to classify a trade as either buying volume or selling volume is based upon how the trade affects the current price. Every trade occurs at a single price, and with few exceptions, that price is either the bid price or the ask price. Volume that occurs at the bid price is known as bid volume. Bid volume is selling volume because it has the potential to move the price down, due to the bid price being lower than the ask price. Conversely, volume that occurs at the ask price is known as ask volume. Ask volume is buying volume because it has the potential to move the price up, due to the ask price being higher than the bid price. Therefore, trades that occur at the bid price are considered selling volume because they help the price move down, and trades that occur at the ask price are considered buying volume because they help the price move up.