VSA Analysis on Sakari

Above is a technical analysis chart on Sakari.

I have given out on looking @ sakari due to its volatility after its share price dropped below $2.00.

A lot of times, its share price is just eccentric and you just can't seem to know what is exactly going on.

However, I have to take a closer look when some of my client's does purchase it  around 1.2- 1.3.

Trading this counter reaps good reward, both positive and negative returns easily =[

Below is analysis of Sakari using VSA. How it was set up before it exploded. Everything is explained over there.

Where do I think Sakari is heading to now?

Been observing Sakari price today. When i mean observing, i mean scrutinizing its bid/ask spread and the queue tracks. The countless withdraw and fake shorts that the SM has did to drive the price even lower.

Monday was considered a rally for us after Friday's excellent US/EU closing.

Without a doubt, most counters will gap up and SM will definitely take this opportunity to gap out to increase their selling.

Looking at the first bar, attempt to push it up higher is met with resistance as seen. $1.5 is naturally seen as a resistance level for Sakari. Thus, SM has to be becareful when price approaches $1.50.

Met with resistance, they have to shake-out the weak shareholders and accumulate these stocks at a much lower price. On hindsight, Sakari fell to $1.44 and eventually closing on $1.475.

Things to take note in the second bar is that volume is comparatively lower. Shakeout could have potentially succeeded  One thing for sure is that supply (when i say supply, it means selling pressure) is definitely much lesser now in my opinion. The second candle stick, coupled with the relatively low volume  (For volume, I use a 20day MA) is a sign of strength in VSA analysis.

What to take note in the future :
 1) Further shakeout to drive investor might occur.

2) Thin spread with low volume might indicate a lack of demand from retailers and SM to push price further up. From then, we might see SM taking profit subtly.

3) If SM is keen in breaking new high, do take note of the volume. Always remember effort must always translate to result! It can always be profit taking in the process.

Let's monitor from here and we shall see

Disclaimer : Please take my opinion as a pinch of salt. This is purely for educational purpose. Trading decision still lies with you. If you have doubts on the analysis on certain things which you are confused or disagree, do leave your name and comment below so we can discuss it.