(4) Level Of Short Interest
It is one of the most relevant key factors or secrets to determine stock moves after results. Short interest should only be considered along with various other factors. You can’t trade or make positions solely on the basis of it.
It can even trap several traders before results. It should be considered as a factor that could exaggerate a move in either direction.
If a stock falls after formation of short positions then shorter will get benefited. This could even accelerate more selling pressure. However, if stock rise after formation of short positions then shorter will in loss.
They will try their best efforts to minimize or cut their losses by squaring off their position. This could even accelerate buying interest that can lead to heavy upside.
[Read Also: 10 Reasons To Buy Stock Trading In Very Tight Range]
(5) Tight Trading Range
It is one of the most technical & hidden secrets to determine stock moves after results. Stock can trade in various trading patterns. These trading patterns are particularly preparation prior to a possible move.
Stocks usually trade in a very tight range for various positive & negative reasons. Its time period in this particular pattern may range from few days to few weeks to even few months.
This pattern may occur anytime irrespective to overall trend of stock markets or stock index. A tight trading pattern may end with a breakout on either side.
Once you get success in making right position in such stock then your profits can be huge. However, you need to be extra cautious while trading such typical chart patterns.
Image Source: Shutterstock