Sigma Labs Inc (SASI)

[Skitradr]

IMO looks like a planned professional shake out, going back to the hammer formed on Dec 23 ,
Looks to me like plenty of PROFESSIONAL BUYERS AND ACCUMULATION


Bar Description:
A shakeout is a mark down on a wide spread closing up near the high to shake out weak holders. If volume is low then supply has dried up. High volume suggests demand overcame the supply but remember this supply will hold back future upward progress. If the spread is narrow it will have less impact. Exercise caution if the bar has gapped down as this can indicate hidden weakness. If volume is ultra high this can be climactic action and the start of accumulation. This indicator occurs over two bars. The first has shown strength which has caused interest with the professional traders, the second bar is up which confirms that strength. Sometimes this can give the appearance of a bottom reversal. Be very careful if the second bar is up but closes off its highs on high volume. This suggests a lot of supply and you would expect that supply to be tested. If the close of the second bar is higher than the first bar's high this adds to the strength. It can often give the appearance of a bottom


Future:
A shakeout on low volume is really a violent test and has the same effect. It shows supply has disappeared and you would then expect higher prices. A shakeout on high volume shows demand was prepared to absorb the supply on that bar but they will likely want to test that supply in the future. Any low volume testing back into the area of the shakeout would be a strong SOS. Be cautious if the shakeout is followed by low volume up bars, or high volume up bars closing in the middle especially on a narrow spread. If the market starts to whipsaw and goes sideways it may be building a cause for the next up move.