Hey Trader,
Ultra-High Selling Volume At KEY Price Level: MTDR
Welcome to the blog! Anthony Speciale here with Hawkeye Traders.
Today, we’re diving into an analysis of Matador Resources Company (ticker: MTDR).
Our goal is to determine if it’s time to sell based on recent market activity, focusing specifically on the volume and price action.
Ultra-High Selling Volume: What Does It Mean?
On Friday, June 28, 2024, we witnessed the highest daily selling volume for Matador Resources since the peak buying volume back in April 2022.
This is significant and worth paying close attention to.
However, the concerning part is that despite the high selling volume, the price did not close below the previous candle.
This suggests a potential resistance point.
Typically, when we see such high selling volume without a significant drop in price, it raises questions.
You might assume that heavy selling would lead to a price decline, but that’s not always the case.
This scenario could indicate that the buyers have exhausted themselves, or perhaps a large number of stop orders were triggered.
Key Indicators and Support Levels
Let’s break down the recent price action.
On June 3, 2024, a wide bar with significant selling volume appeared.
Fast forward to June 28, and we see a much smaller bar despite the ultra-high volume.
This discrepancy suggests that the sellers may be losing momentum.
Before making any decisions, I recommend looking for additional confirmation.
If we see a break below the recent upward push, it could signal that the sellers are regaining control.
On the other hand, if the price holds and starts to push higher, it could confirm that this was a sellers’ climax, meaning the selling pressure has peaked, and we may see a rebound.
Potential Price Targets
If the price begins to rise, we should watch for retests of previous highs:
$61.89
$63.89
$65.88
$67.52
These levels represent potential resistance points where selling could resume.
However, if the price breaks through these, it could signal a continued upward trend.
Conversely, if the price fails to hold, we could see a decline towards $53.23, a significant support level.
Action Steps
Monitor the Volume: High selling volume like we saw on June 28 can lead to a significant move. Watch how the price reacts around the $59.50 level.
Look for Confirmation: If the price holds and begins to rise, it could confirm a sellers’ climax. If it falls, be prepared for further declines.
Set Alerts: Place alerts at the key levels mentioned above to stay informed of potential price movements.
The relationship between volume and price action is crucial in understanding market behavior.
I encourage you to add Matador Resources to your watchlist and observe how this situation unfolds over the coming days and weeks.
Next Steps
I’m committed to keeping you updated on this analysis.
I’ll post an update next week or the week after to see if this was indeed a sellers’ climax or if the sellers continue to push the price lower.
In the meantime, I highly recommend attending the Training Webinar linked below.
It dives deeper into the relationship between volume and price action, providing valuable insights that can enhance your trading strategy.
Understanding these dynamics is vital, whether you’re day trading, swing trading, or position trading.
By mastering the interaction between volume and price, you’ll be better equipped to make informed decisions in the market.
Thank you for reading. Stay tuned for more updates, and as always, God bless.
Happy Trading,
Anthony Speciale
Speciale Analysis
About the Author:
Anthony Speciale is a seasoned market analyst with over 13 years of experience trading. Through his platform, Speciale Analysis, he offers in-depth market analysis, interpretation, and expectations designed to help all types of traders, at every skill levels reach their full potential.
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