Ford, Tesla, Virgin Galactic Look Set For Continuation Higher Due To This Key Indicator: What To Watch For
Volume is the total number of shares traded in a security within a specific period of time. It is a momentum indicator used by technical traders to gauge overall interest and sentiment in a stock. Volume is also used as an indicator to confirm a trend or trend change.
When bullish trading volume increases, the share price of the stock usually moves higher whereas increasing bearish volume, when a stock is in a downtrend, usually pushes the price lower. In contrast, lower than average trading volume usually indicates consolidation, which results in the stock trading sideways.
- When a bullish trader has a position in a security, decreasing volume can act as a sell signal because it indicates the stock is running out of buyers.
- A bearish trader in a short position may watch for decreasing bearish volume to indicate the stock is running out of sellers and a reversal may be in the cards.
The F Chart: 76.33 million shares of Ford's stock exchanged hands on Friday, compared to the 10-day average of 62.27 million. This may indicate confirmation of a trend change.
The SPCE Chart: Virgin Galactic's trading volume measured at 23.01 million on Friday, compared to the average 10-day volume of 13.42 million. This may indicate a trend change.
The TSLA Chart: 28.20 million Tesla shares exchanged hands on Friday, compared to the 10-day average of 18.37 million shares. This may indicate bullish continuation from the break of a bull flag pattern Benzinga called out Sept. 16.
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