PDA

View Full Version : Relationship to Price and Volume


Scott Gonzales
03-07-2009, 03:06 PM
If you look at the company graphs over the last 6 months paying attention to Closing Price and Volume, you find that there is often a huge spike in volume before the price starts to go up. This only applies to companies with volume in the hundreds of millions of dinars. It will be interesting to see what happens to Al-Basrah Bank (See graphs below).

The hotels certainly spiked in volume prior to their recent huge increase in price.

Graphs are for Al-Basrah Bank

http://www.iraqstockx.com/images/BasrahClosingPrice.bmp

http://www.iraqstockx.com/images/BasrahVolume.bmp
GottaDash
03-07-2009, 03:38 PM
Generally a spike in volume means there will be movement - but that movement can go in either direction.

Just my 2 cents worth.
Scott Gonzales
03-07-2009, 03:55 PM
There is only one way to go for banks - up. The concern I will have is that many of these graphs show investment in dollar amounts between $500,000 and $1,000,000 on a single day. That is a lot. These investors may expect a doubling soon then cash out. Who knows. Maybe they are like me and just wanted to get in expecting a continuous rise for the next several months.


Generally a spike in volume means there will be movement - but that movement can go in either direction.

Just my 2 cents worth.
GottaDash
03-08-2009, 09:52 AM
There is only one way to go for banks - up. The concern I will have is that many of these graphs show investment in dollar amounts between $500,000 and $1,000,000 on a single day. That is a lot. These investors may expect a doubling soon then cash out. Who knows. Maybe they are like me and just wanted to get in expecting a continuous rise for the next several months.

I agree. The reason why I said what I did is because the ISX to this point is choppy trading - although, recently that has definitely changed.

I agree that there will be profit taking - but I doubt it will be in large volumes. JMO, but these people are in on the ground floor and buy and hold is a good thing for them. This is pure speculation on my part, but I get the feeling that the stock market might be considered a safer place to have their money in Iraq - do they fully trust the banks yet?

Personally, I wil be watching where the money flows to (other sectors then banks).

So far, the ISX has not shown it's celing - yet. IMO, Banks are still a good place to be. :sun:

But, I would defer to you and the other ISX'ers. You all have more experience with the ISX then I. :rock: