It was an interesting market today; the price was held at 1.38 despite a plethora of buys, clearly the mm's were managing a sale, and at shortly after 2pm a 1m sale went through. Once cleared the bid and offer once again moved according to the weighted buys or sells that went through. The cleared over-hang meant that the price fluctuated, and increased into the close according to supply and demand as you say. Some mm 'games' to generate cover for the sale, but a more fluid market into close bodes well for Monday! Although COMS shares are clearly gold plated, Monopolistic forces are not at play here and ultimately if more people buy, the shares will go up!
The basic law in economics is that prices are determined by supply and demand unless monopolistic forces are present in a given market.In view of the balance between s&d in this market today the obvious answer is that for some reason the market makers are messing about.Any suggestions?
Adrift, I concur that following charts on aim has some difficulties, particularly with illiquid stocks like COMS. The best way is to use longer time periods to cut out the 'noise' of large fluctuations on a daily basis. My last chart was back in October and signified a possible run up to 2p, where resistance at 1p had proved hard to overcome. http://s26.postimg.org/j5wg417a1/Coms.jpg The result of this prediction was reasonable I think? I agree however, it as just something to consider when making a decision when to buy/ sell. My current hunch is using a 3 month chart, and time will tell whether useful or 'B.S' as Mainora calls it. Happy to prove wrong, but even happier to be 'having a go!'
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