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Possible meaning of super large Volume and no spread after market close

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rayb10

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Hello, Just after some possible reasons why this would occur on a chart. I assume most people believe volume is a crucial part of analysing a chart but this is too weird and wanted to know if it's important or not.

1 - Super high volume (40 times larger than avg with a total volume of 4.7M)
2 - only at one price point so assuming only single transaction (at $1.70)
3 - Transacted after hours

This happened last night after 4pm on EHE (Estia Health Limited). I'm learning Volume Price Analysis and this seems to be a typical anomaly where the volume does not match the price spread but I would like to hear from experts on what this usually means and is it something to consider when analysing a chart)

My understanding of possibly meanings

a) An agreement between two big players (Insiders?) to make the transaction - Conclusion: Will never know the reason and not to be considered during technical analysis.

b) Something is brewing behind the scenes and it could mean something - no idea what though.

c) Another reason that I don't know which I hope to be enlightened on.

Also, would it mean something else if it wasn't after hours?

Here is the 15 min graph after seeing the large volume on the daily.

Any insight on this would be greatly appreciated

Ray.

 
Must be a tricky one but would ANYONE have any idea why a 4.7M volume on a SP of $1.70 transaction take place after hours (or any time really). Do you think it's just a hidden agreement or is it something to take into consideration when analysing the chart?

I hope someone might help me with this as I use volume as a critical element when analysing charts.
 
G'day Ray,
What time did it take place and what was the trade code.
Eg; L1XT or similar standard.
I note it was the last day of the month, and options come into play.
I can't help you there though as I don't trade in options.

Yes, when an entity dumps $8 million of stock, one has to wonder why, and you may have heard the saying "follow the money".

Separately, if you include this event into your volume analysis, what's the outcome or direction of SP it indicates to you?

Cheers and hopefully someone else can help out with what if anything may have happened from the options point of view.
 
Thanks for your responses

Frugal.rock:The time of the transaction was exactly 4:10pm on the 30th Nov (It didn't occur to me that the last day of the month would be significant). how do I find the Trade Code? I assume it's different to the Company code which is EHE. I just use Tradingview for my charts and have not heard of a specific "Trade code" before for a transaction.

You might be right with regards to Options - If it's an end-of-month thing then that could be it. I don't know much about options and so am a real novice when it comes to that.

It's just a massive volume compared to the average and in VPA it's considered an anomaly and most likely to do with the money makers playing games or trying to influence the market in some way.

Austwide: I think I will take it as an institution to institution transaction or some other options / agreement factor. The fact that it's only a ONE price point is the weirdest part for such a large volume. I've just never seen such a thing before.

It was also 4c lower than the closing price 10Mins before at the end of the official day and then the next day the price jumped from $1.70 to $1.74 in the first minute to resume where it left of???

Anyway, if other people might have some reasons then please chip in. At this stage I'll move on and assume it was some sort of Big Boy Deal

All the best
Ray.
 
Gday Ray,
Firstly, check out the ASX cash market trading hours and read up on CSPA.


Secondly, the code I am referring to (if present) would be with the trade info in "course of sales" or whatever your broker calls. As per below image which also shows any conditional codes for trades, note the "XT" ? This indicates a crossed trade which is only available by a conditional order. Every conditional order will have a condition code which can give insight on some occaisions.




Cheers
 
OK. Thanks for that. I just found out my broker doesn't record the course of sales. Only Market Depth.

Oh well - thanks again for your efforts

Actually, I just thought it also might be an on-market transfer from a director or other insider?? I think I remember reading about that a little while ago. For some reason an off-market transfer is not made and they decided for on on-market transfer. (Something to do with not having to officially declare the change of holdings). Still an agreement of sorts though.
 
Excellent thread. One Broker. One Buyer. One Seller. Large volume ++ trade for day in “auction time”. Price closes lower. Recovers next day. Nothing to see here as the coppers say. Move on.

gg
 
Garpal Gumnut said:
Excellent thread. One Broker. One Buyer. One Seller. Large volume ++ trade for day in “auction time”. Price closes lower. Recovers next day. Nothing to see here as the coppers say. Move on.

gg
Click to expand...
Wish I had your crystal ball !
You broke my sarcasm meter...
One buyer ? No.
One seller ? Yes.
Here endeth the lesson.

But your right, ~1.8% trade of the market cap isn't a huge one.

However, it is worth taking note of.
Moving along, SP and volume may indicate the sale was foretelling something. It's a wait and see game, however, the sell may never be explained.
 
GG is right
Off market transaction on an agreed price between buyer and seller.
Happens all the time
 
There were 103 trades in the closing auction totalling 4.76 million shares which is certainly unusual for this company. Just these shares only in the closing matchout is nearly 7 times the average full day's trade.

Of those trades in the matchout 1.56 million were cross trades. This doesn't necessarily mean that they were the same buyer or the same seller, just that one or more of the brokers crossed a trade from one or more of their clients to one or more of their other clients.

The special cross after market was for 232,728 shares, which will be from client of one broker to a client of another broker at a negotiated price.

Probably a case of end of month balancing of the books by their large clients
 
@Country Lad
Thanks for a thorough sit rep.
Can I ask how you access this kind of info post date?
I can get it on the day until things reset next morning but can't get it historically.
How do you do it?
Cheers.
 
That's some detail @Country Lad and is quite telling in that these sorts of transactions can mess with the technical Analysis a bit in regards to daily candle formation, averages and any indicator that uses volume I suppose.

I drilled down to the 1 minute chart and all those transactions occurred on the same minute (4:10 pm) which is the last trading minute of the month so I assume they were all triggered via some automatic system.

Still, just goes to show that just looking at the daily charts without drilling down could be deceiving in certain scenarios. Another reason to wait until the price action / volume is confirmed (or not as was the case here). And while waiting, cross all fingers and toes that the price doesn't jump in an undesirable direction BEACAUSE of the reason behind the massive volume spike that I didn't know about .

All fun and games - Thanks for everyone's input.
 
rayb10 said:
I drilled down to the 1 minute chart and all those transactions occurred on the same minute (4:10 pm) which is the last trading minute of the month so I assume they were all triggered via some automatic system.
Click to expand...

@rayb10 it is worthwhile understanding the way the opening and closing auctions work. This link may help as it explains it in detail.
 
That article was great @Country Lad - really informative. Another piece in the puzzle

I like your signature by the way - I still have a long way to go.
 
@Country Lad
Sorry to be a pain, but while we are here, would you be able to give me a few pointers on how to get to the past trade data inside IRESS?
I have access through Westpac and rarely use it as I find it clunky, so am a beginner at it...
 
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