Trading Analysis - 9th Jan 2019


9 January 2019

End of Day

Recall yesterday that the end day auction produced a 42p end of day share price despite the actual end of day trading position being 41.4p. The drop, by 9AM, in Bid and Ask yielding an SP of 40.5p was somewhat overstated as -3.6%. Evidently despite this buying pressure returned and following a number of 50K Buys the nett trade position moved towards and excess of c. 180K more Buys than Sells. 

The spread proceed to tighten in the period before 11AM which seemed to draw out a rollover or two. The spread tighten even further on the way towards noon with a price inversion (Sell price higher than the Buy price) at this time. A reduction in the Ask just after 1PM led to another surge in buying, led initially by a number of chunky Buys just below our 50K highlighting threshold. 

Around 2:30PM it seems that Fatbanker, now apparently back from the continent, piled in with one of his famous 80085 Buys, shortly followed by a 100K Buy which pushed the nett trade position over 600,000. A nice Bed&ISA obediently pinned to the Bid line followed and then we were into the final straight which was all simple until a weird 100 share sized Buy at 42p pitched up. If the purpose of this was to fool us into thinking that the 100K trade 5 minutes later was a Sell, then I'm afraid they failed miserably in that - it is clearly a Buy, and marked as that. 

The day ended, as usual, with an excess of Buys. 584,175 of them despite the SP dropping by an apparent 3%. The share overhang cannot last forever so take advantage before big news arrives.

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