Reasons why stocks jump in value on no news?

[Dilati]

What would be the reason for a stock to jump in value when there isnt any announcement or any news that would relate to it? is it because the share is devalued and the investers are more purchasing the stock in bolks or what?

For example today centro shares went up 20% and there wasnt any announcement or news regarding that stock.

and how can you forecast the shares movement by looking at the volume of trade?

Thanks

 

[So_Cynical]

Re: What would be the reason for a stock to...

I don't follow Centro...however we are talking about a 20 cent stock that is very speculative and has been for some time....looking at the volume today its safe to assume that all the sellers at 17, 18 and 19 cents got taken out...that leaves us at 20 cents.

U could argue that the Centro SP is just catching up to the rest of the market in general, or just keeping pace with it...about 8 mill traded today so not exactly earth shattering.

 

[tech/a]

Re: What would be the reason for a stock to...

Thanks for pointing CNP out.
There is much in the volume spread analysis in this chart and will post more at a more reasonable hr.

 

[jono1887]

Re: What would be the reason for a stock to...

Thanks for pointing CNP out.
There is much in the volume spread analysis in this chart and will post more at a more reasonable hr.

CER has more volume and it slightly less at 0.15c.
Does anyone know what the difference is between CER and CNP? Their both CENTRO

 

[Timmy]

Re: What would be the reason for a stock to...

CER has more volume and it slightly less at 0.15c.
Does anyone know what the difference is between CER and CNP? Their both CENTRO

No offense intended Jono, but if you want to get a job in finance at the very least knowing how to use Google could come in handy.

 

[MACCA350]

Re: Reasons why stocks go up on no news?

The breakout was on the cards based on the formation of an ascending triangle.

cheers

 

[Boggo]

and how can you forecast the shares movement by looking at the volume of trade?

Thanks

This could be a reasonable example to display volume and price providing a heads up as to what may be next.

(click to expand)

 

[Boggo]

BLY is another example where the volume and the closing price for the day can be a lead up to something positive.

(click to expand)

 

[tech/a]

The analysis of consolidation/accumulation/distribution areas by way of Volume and Price movement is indeed a fascinating topic.

There is so much that can be/is telegraphed to the analyst who understands it.

I have examples to present both in Daily and Hrly timeframes.
Will do that tonight when I have the time to present properly.

But the key is in EXTREME volume both extreme in quantity and extreme in scarcity of volume.I find the LATTER very powerful.
Where it occures (Both volumes) what range does and consequent price action fills in the blanks.

Volume support/resistance becomes a tool Ive never seen discussed or applied.(Maybe Ive invented it?).

 

[johnnyg]

Here's a system I have, It's been long CNP from the 10/8/09. Only uses Volume + Price for entries.

 

[tech/a]

Thanks again for CNP.
It obviously read my script.

 

[jono1887]

Thanks again for CNP.
It obviously read my script.

I'm assuming you're one of those that managed to double their investment in a week?

 

[tech/a]

Took some off the table.
Bought some back again.
So enjoying the volatility

 

[skyQuake]

Took some off the table.
Bought some back again.
So enjoying the volatility

Its all deja vu

 

[prozac]

Some companies just leak like sieves. How many do you see where the volume starts to go up only days before a good announcement.

 

[jono1887]

Some companies just leak like sieves. How many do you see where the volume starts to go up only days before a good announcement.

And where would one be on the other end of these leaks??

 

[chrisalex]

Centro CNP jumped because they got a brilliant wind up on the ABC2, 'Inside Business' program. 10.00 am Sunday. When I saw it I didn't even have the deposit on a bread roll.
Happy punting, chrisalex