Sea Ltd stock analysis w/ boxes and Volume Profile
Hi everyone,
This time I am analyzing
SE stock movement using volume profile besides my usual boxes setup.
SE stock price has shown very persistent up-trend strenght for the past year.
When we have the equity soaring up likeSE does, it is helpful to use Volume Profile to see a bigger picture.
I added three volume profiles for different timeframes: 9 months, 5 months and 2 months.
What does it show us?
As we can see in the past 9 months the biggest trading volume occured around 273 level. That is where our long-term POC is.
However, a decent volume profile started developing from 308 level and above.
For the last 4 months the highest volume has been seen at 323 level. Both 2 and 4 month profiles have universal volume distribution with same POC level.
That means that higher price level has been accepted and stock is consolidated on a higher time-frame.
What now?
As volume profile is dynamic, I expect long-term POC to migrate to 320 level.
However, for that to happen we will need to see a lot of volume at 320, which is 7% lower than the current price.
AND that would be happening at the uptrend support line, which is dangerous.
IF that is broken, we could see a return to 273 POC to repair long-term profile structure.
IF we continue higher from here, we would get unevenely distributed profile, which could be bad in the long-run.
Let me know what you think ofSE movement and if it is sustainable.
Trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise.
This time I am analyzing
SE stock movement using volume profile besides my usual boxes setup.SE stock price has shown very persistent up-trend strenght for the past year. When we have the equity soaring up like
SE does, it is helpful to use Volume Profile to see a bigger picture.I added three volume profiles for different timeframes: 9 months, 5 months and 2 months.
What does it show us?
As we can see in the past 9 months the biggest trading volume occured around 273 level. That is where our long-term POC is.
However, a decent volume profile started developing from 308 level and above.
For the last 4 months the highest volume has been seen at 323 level. Both 2 and 4 month profiles have universal volume distribution with same POC level.
That means that higher price level has been accepted and stock is consolidated on a higher time-frame.
What now?
As volume profile is dynamic, I expect long-term POC to migrate to 320 level.
However, for that to happen we will need to see a lot of volume at 320, which is 7% lower than the current price.
AND that would be happening at the uptrend support line, which is dangerous.
IF that is broken, we could see a return to 273 POC to repair long-term profile structure.
IF we continue higher from here, we would get unevenely distributed profile, which could be bad in the long-run.
Let me know what you think of
SE movement and if it is sustainable.Trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise.
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