NU LONG POSITION

I tried a handleless cup pattern and failed. For now, it looks like it's forming a new handle. However, the high volume at the handle is a negative factor. On the weekly chart, however, the little change at the closing price is a positive factor. It could be proof that someone is buying in a certain price range. This pattern was seen in 2023. If it breaks out strongly the buy line, buy it. If it doesn't and hits a new low, avoid buying.

Note

% Using Google Translator. Please understand.

As of now, NU is showing a typical institutional(or market maker anyway) acquisition pattern.
I am writing down a small tip regarding this part.

NU has been forming a tight weekly close around $11.7 for over five weeks following dramatic volatility following its earnings release.
At the same time, during the first four weeks, trading volume remained high with significant differences between weekly highs and lows.
Since market makers' accumulation usually involves maintaining low trading volume at the bottom of a falling stock and accumulating stock volume over a long period of time, there is room for interpretation of NU's pattern as being different.
However, NU is also clearly a market maker's accumulation pattern.
Why is that so?

First, let's assume that we are a market maker and that we are trying to accumulate NU in large quantities at a slightly lower price.
What is needed to acquire large quantities at a relatively low price?
First of all, if you want to buy in 'large quantities', of course you will need that much to buy.
To do this, we need to get existing market players to sell the amount of NU they own.
In addition, we must suppress the buying force that continues to push up stocks inertially.

In particular, for stocks that were on an upward trend, such as NU, neither institutions nor individuals want to easily sell their holdings.
This is because, if they are already making profits, they are willing to tolerate a slight adjustment or sideways move for higher profits.

Above all, NU is strongly perceived as a 'Buffett' stock, so there are many people who believe in Buffett and hold on.

In this situation, if you want to get them to sell the stock, you have to first make it a 'boring' stock.

So what exactly are ‘boring’ stocks?

That would be a stock that, while the Nasdaq is rising, has not been able to rise on its own for several weeks and has been moving sideways or even falling.

What people fear the most is loss, and the next thing they hate is FOMO.

If you look at NU's weekly chart, the Nasdaq index continues to rise, while NU is showing a sluggish sideways trend.
When the price of a stock rises a little, someone lowers the price again, and when it rises a little, they lower the price again.
It can be seen as a fierce battle between selling and buying forces, and that is correct, but the fact that the weekly closing price moves sideways in a similar range ultimately shows that this stock is being managed by existing large-scale forces.

As a result, the power of buying forces trying to raise stocks began to gradually decline.

This long, boring period would have caused existing players to sell off their stocks little by little.
Because during that time, AI stocks, including NVIDIA, would have continued to hit new highs.

Players who were already seeing profits took profits by reducing the proportion of underperforming stocks.

And players who suffered losses in the last correction tried to make up for their losses by selling whenever the stock price rose with the mentality of trying to break even.
(This is a natural human instinct that appears when you lose money in stocks.)

As a stock becomes increasingly 'boring', the gap between weekly highs and lows becomes smaller and trading volume begins to decline.

Just like last week.

Last week was the week when NU Holdings' popularity began to fade in earnest.
The buying force to push the stock price up has become very weak, which has led to a decrease in trading volume.
There were more people selling than buying as it started to move in the opposite direction of the market index, showing a 'uninteresting' pattern.
Volatility decreases and stock prices appear to gradually decline.

At this time, I noticed Friday, June 14th.
This was because if a market maker was managing this stock, he would definitely buy up again the quantity of NU whose price fell that day.
And sure enough, NU rose 1.2% to $11.7 even as the market index struggled.
They happily acquired the volume that was pouring in due to market pressure, and this was a clear signal.
Looking at this, it is assumed that the institutions currently accumulating NU are quite seasoned professional investors.

It is highly likely that the stock price will continue to move sideways for a certain period in the future.
They will make bottoms with low trading volume and occasionally raise prices, enticing existing players to sell their stocks and move on to other stocks.

until when? That is until they have acquired a quantity they are satisfied with.

Hold on to NU unless it plummets on very high volume, or the support line breaks.
Unless they change their minds for some reason, there is a high possibility that they will break the new high with strong trading volume in the future.

Note

Although it is earlier than expected, the stock price has risen along with high trading volume. This could be a sign of institutional investors (deep pocket anyway).

Note

NU is falling sharply after breaking through a new high. When NU went up last week, my only concern was that it was too early. Maybe those concerns will come true. It was quite an intentional act that Jefferies raised its PT as soon as the market opened. Using this news as an excuse, they drove up the stock price and are now selling it. If NU doesn't bounce back today, clear some positions. If nu's closing price today is around $11.8, you can be angry. That's because it's their deliberate move to take away the volume of individual investors.

Note

It has become increasingly likely that the last plunge was a move by institutional investors to secure more shares. If the stock price breaks out of $12.97, I would be more comfortable watching this stock.

KANUSE

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KANUSE