Hey there dbb, Absolutely.
The dynamics are poised to change very soon.
Different traders have different mindsets and goals.
You have shell players, technical traders and those who just follow momentum and buzz.
They take bigger risks, with smaller amounts of capital and can have dozens of R/M, shell or sub-penny stock plays at any given time.
But when a R/M or FLE is completed and the risk of a head fake is off the table, we usually see fundamental traders and value investors enter the picture.
These are the traders who move in when some of the risk is removed.
Value investors often come in hot. If the best ask is 20,000 shares @ .20, they will hit it for 40,000 shares.
The best ask has just become the best bid and they wait. They are providing bid support for their own initial buy.
By providing bid support higher than channel traders and flippers, they are potentially locking out those who have sold and hope to reload.
They will watch to see if that bid gets hit. Everyone does.
If new bid support holds, other fundamental traders will jump that bid or hit the ask in a similar fashion.
The stock will then stair step to new highs, while the higher risk shell and momentum traders move on.
That’s what people mean by “churning” a stock.
Circle of life.
I apologize for preaching to the choir, I just wanted to give others a perspective on the potential that longs are watching for.
GLTA, IMO and FWIW
AI
