After reading a flyer about Minetech's goreng story after the announcement of Dato' Awang Daud as a Chairman yesterday, I feel like the operators are trying to play dirty game to dispose their shares.
Because I saw a "volume climax (pump and dump)" pattern today. This reminds of the crash of Sealink's share price! Same boss!
So, what is happening during this volume climax pattern in the uptrend?
In technical analysis, during this volume climax in the uptrend, the operator is simply selling into demand/buyers that has been created during the trend higher, especially with the announcement of new Chairman that linked to Serba Dinamik.
Remember, this stock has recovered from a low of 6.5sen since market bottom in early March 2020 to today's high of 14.5sen! It means the stock has already gained 123%. How high can it go in this crisis market?
Yes, thanks to new Chairman because the rally in Minetech's share price since 6.5sen has been attributable to his acquistion of shares in the company. But not all his including yesterday. The new Chairman only acquired 8.5 million shares yesterday and the rest of more than 20 million are not his.
Of course, there could be a positive outlook in the company after the changes in boardroom but this is not a 1-day story!
With buyers are now in the 'greed mindset', any selling at this level looks natural selling. But with a weak market today because US futures extended losses, buyers are now becoming overwhelmed with the sellers. That is what we see in today's price behaviour that reflected in the candle associated with ultra-high volume. In other words, it does not make sense to see today's candle only moved up by 2sen similar to 2sen candle up on 27th March but today's volume was climax.
The operators now have a real struggle on their hands, desperately trying to keep the stock propped up, closed high at 14sen today and will try force it higher tomorrow to break 14.5sen and test 15sen or maybe slightly higher to attract buyers in and will desperately selling large volume to these buyers.
Hence, this explains why the volume was climax today during the price action (which only up by 2sen) and the distribution phase may reach final stage at abovementioned areas.
Good luck!
https://klse.i3investor.com/blogs/trendtrading2030/2020-04-01-story-h1485758657-THE_CONSPIRACY_THEORY_OF_PUMP_AND_DUMP_OF_MINETECH.jsp
