$RBLX - Price Action & Technical Analysis

"I do not know when or by whom the word "manipulation" was first used in connection with what really is no more than a common merchandising process applied to the sale in bulk of securities on the Stock Exchange."

Jesse Livermore


It was interesting for me to revisit this quote from Jesse Livermore because the first time I had contact with its underlying concept was when I read Anna Couling's "Volume Price Analysis".


I absolutely love what I learned from her book, and I will forever carry some of its lessons. In regards to these "manipulation" campaigns, what stuck the most with me is that these are no different from a "manipulation" campaign from ... well, a common merchandising process of any product.

• The merchant is loaded with its merchandise;
  The merchant wants to sell as much as possible for the highest price as possible, so the merchant starts marketing it's merchandise;
  Once the public becomes aware of this product they start buying;
  Ideally, the marketing and merchandising campaign is so successful that the product is bought for steadily higher prices and in higher amounts;
  Ideally, there comes a point where the merchant has the stores and the warehouses empty. He needs more products (of the same product for easy reference). But it turns out that he wants to buy more products to resell, he will have to pay a lot for it as it is currently very expensive following the sales frenzy. So what does the merchant do? He organizes a marketing campaign to depreciate the value of the products;
  If he is successful what does he do if his campaign succeeds? He buys those products on sale, refills his warehouses and once fully stacked with no more sellers in the market.
  The merchant repeats ...
  
  
  Rings a bell? Oh and guess what is a naturally gifted marketing instrument? That's right, the price is a self advertiser ... All the manipulator has to do is to bid it up or down to get it noticed ... or to use the news media for similar purposes.
  

Otherwise how do you think Jeff Bezos or Elon Musk unload their shares? They need these professionals to liquidate without crashing the stock while driving their networth to zero.


Moving onto the stock of the day, today I brought you $RBLX - Link in bio for a Comprehensive Analysis.