Australian (ASX) Stock Market Forum

Share Price Capping

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16 November 2006
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Is it real, does it really happen or is it just our imagination
I have seen shares pushed down on a weak days
And last sale of the day dump
But how do you know that an out of the ordinary size parcel from left field may be a capper:confused:
Any thoughts or examples?
 
Here's one example
This morning i thought inl had been capped at .155 with 1 parcel of 1 mil.
Then while i was posting the above, somebody just took them out; ie they were bought and the buy side parcels hadn't changed.
 
I think it might happen occasionally. When you watch live depth closely and see multiple trades of tiny sums going through whenever a certain price is hit, you can bet some broker's robot is programmed for a 'net sell' or 'net buy'. But in general, I think ppl use it as an excuse for SP not rising like they want it to.
 
Today inl closed at .15
Buy 2.5 mil @.145 Sell 300k @ .15
Then some turkey sell's 1k @ .145 aftermarket value of trade $145
Maybee they couldn't take the pressure of holding overnight:eek:
 
I've always wondered about these tiny parcels.. are people incorrectly entering the quantity by a digit? is it some computer program, or what could be the reasoning? :confused: Seems odd, as joe pleb generally has to pay a minimum of an in-and out of about $50-80

What exactly is Share Capping anyhow? is it putting a Sell order in of say $1mill just above current price, to spook others from bidding up on that share, then canceling, buying in at the lower price you've pushed everybody down to? :cautious:
 
Today inl closed at .15
Buy 2.5 mil @.145 Sell 300k @ .15
Then some turkey sell's 1k @ .145 aftermarket value of trade $145
Maybee they couldn't take the pressure of holding overnight:eek:

Oh right. So it's just "capping" that has led INL into an 8 month downtrend? :rolleyes:

What a life it must be watching every trade on INL each day...
 
AGS had a Seller of 100,000 shares at $1.775 which has suddenly vanished when the buyers got too close for comfort OR his wishes had been fulfilled. dyor looks as though AGS are ready to move again.:)
 
Cld someone give a brief explanation of how capping is done.

Sure mate ... it is an accumulation of sellers at or around a share price.Usually called resistance (as in support and resistance) it is a place where the sellers have agreed to sell.

It is done via agreement.


.
 
Perhaps you might find some answers here http://pollux.biz/charttv/?p=8


there could be many reasons for this including;

The team controlling the stock (if one exists) has to cover all positions before market close and gets rid of any remaining stock. They will usually do this in the dying 15 minutes of a session.

A working order has not been filled and must be filled before the market closes and many other reasons.

I wouldn't spend too much time watching the depth.
 
That is an interesting hypothesis and price propping is seen everyday.Like yesterday a bid of near $100,000 in a new company drilling their first wildcat well in the middle of a bear market is real strange.

Reason 1 could be they know there will be a commercial discovery or reason 2 could be they are propping the price up to push other bidders higher.

PM me chart tv if you want to know which stock this happened with.
 
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