This chart begins September 29, 1928. For each space 1/8 wide, I have used to represent 25,000 shares. For example, during the week ending September 29, 1928, sales were 26,600 shares and the high was 85 and the low 76 which is represented by 1/8. The same with the following week, when the sales were 25,000 shares or less and the stock remained in a narrow trading range but gradually worked up until the week ending October 27th, when the volume of sales was 111,4000 shares and the stock advanced to 88 ½. I made the space 4 wide to represent 100,000 shares. Then note November 10th, or the week ending November 10th, when the stock advanced from 84 ½ to 108, sales were 238,900 shares. The following week, sales were, 116,400 shares and the price only went 3 points higher. Then the stock broke the angle of 45° and declined to 85. During the week ending December 8th, and the following week, the price was around this same level, holding above the angle of 4 x 1 from the bottom, and failing to get back to the low reached during the week ending December 10th. The volume of sales on this decline was small. For the week ending December 22nd, sales were only 25,000 shares. Then the stock started up again.
During the week ending January 19, 1929, sales were 138,800. The following week sales were 81,200 and the next week with the stock getting only a point lower, sales were only 25,000 shares. Then followed a quick rally ending in the week of February 9th, with sales of 175,000 shares. This was top. A quick reaction followed with sales of 74,200 shares. In the following week, the bottom was around the same level with sales of 163,000 shares. During the week ending March 2nd, sales were 51,500 shares. Then followed two weeks of small volume, 33,500 shares and 32,200 shares. Here the stock again broke under the angle of 22 ¼, or 2 x 1 from the level of September 29, 1929 and a decline followed. Bottom was reached at 68 on the week ending June 1st, when sales were only 33,700 shares. The following week sales were only 27,000 shares which indicated that liquidation was not heavy and had run its course. The stock rallied to 97 during the week ending July 20th. The volume of sales was only 48,700 shares, not enough volume to indicate that the buying was strong enough to force the stock higher at that time. A decline followed and the volume of sales was small. During these weeks the sales run 25,000 or less, getting down to 8,800 during the week ending August 31st which indicated that there was not much stock for sales at this price and that some one was just taking what was offered.
During the week ending September 14th, the stock was rushed up to 100 on sales of 138,400. Note that it failed to cross the top of April 6th, and that both of these tops were under the heavy volume of February 16th and 23rd, which indicated the big distribution that took place between 104 and 115 was by people who did not intend to buy the stock back for a long time and that when the stock approached the level of 100, they sold heavily again.
During the week ending September 28th, a decline followed on small volume, but the angle of 45° was broken and the stock continued to work lower. The volume increased during the week ending October 26th to 56,600 shares. The following week it made 50,600 shares, indicating heavy liquidation at this time. Then during the week ending November 9th and 16th, sales dropped to 17,200 shares and 29,000 shares. Final bottom was reached on November 13th at 37 ½. Then a rally followed up to the week ending December 14th, but the volume of sales was small only getting up to 31,000 shares and on the top week 21,000 shares. A reaction followed but the volume of sales was still smaller, 12,300, 11,300, and 13,800 shares. The bottom was reached during the week ending December 21st, when sales were19,000 shares, then two narrow weeks on the side with he total volume not exceeding 25,000 shares. This indicated that the stock was thoroughly liquidated and was getting ready to go higher, but the week ending February 1, 1930, when the stock crossed the high of December 14th, volume of sales increased to 92,000 shares. Then during the week of February 8, there was a small reaction, but the volume of sales was only 23,000. The advance was resumed the following week and sales reached 62,400 shares. The next week the sales were 48,300 shares. Then during the week ending March 1, there was a small reaction but the volume of sales were only 36,500 shares which indicated that the buying was better than the selling, and that there was no heavy selling pressure yet. The advance was resumed and the volume of sales increased every week until the week ending March 20, when the stock sold at 124 ½ with a volume of sales of 206,000 shares. This was the largest volume of sales of any time since November 1928, a reaction of 20 points followed, but during the week ending April 5th, sales were only 83,600 shares. In the following week the stock made a higher bottom showing that the market had not yet reached top.
During the week ending April 19th, sales were 184,600 shares and during the week ending April 26th, sales were 258,100 shares. With the stock up 105 points from the extreme low, and the volume of sales almost equaling the total amount of stock outstanding, was a plain indication that top was being reached for a big reaction. During the week ending May 3rd a big decline followed, sales reached 304,000 shares, an angle of 45° from the low at 103 ¼ was first broken , then the angle of 45° from 37 ½ was broken and the stock declined to 87 during the week ending May 10th on sales of 310,400 shares, breaking all records up to that time. It got down near the angle of 22 1/2 , or the angle of 2 x 1 from the low of 37 ½. It was a big reaction for two weeks period of time and came down 57 points. Figuring your low of 37 ½ to the high of 143 ¼, gives a half-way point of 90 3/8. The stock declined 3 3/8 points beyond this. This was due to the large volume of sales and the momentum. However, often a stock will go 3 ¾ points beyond the half-way point ant then recover, especially if it has had a big decline. The greater the decline in number of points, the more allowance can be made for fluctuations around the main center of half-way point and, of course, vanadium with a very small volume of floating supply of stock makes faster moves and wider range than a stock of large volume.
During the week ending May 10th, the volume of sales of 242,400 shares and the price crossed the top of the following week and advanced to 110 ½. The following week it advanced to 120 ½ on sales of 248,600 shares, showing that the volume of trading was increasing on the way up but the price was not increasing in proportion.
During the week ending May 31st, the stock reached 124 on volume of sales of 135,700 shares, an indication that the selling was better than the buying and that when the price level approached where distribution started, it showed that there was again the very best of selling.
During the week ending June 7th, the price advanced to 125d. Figuring the top of 143 ½ to the low of 87, the 2/3 points was at 126 ½. Then figuring the total value of the stock 143 ½, we find the 7/8 point at 126 3/8. This made 125 a very strong Resistance Level because it was at the 7/8 point, of total value, and close to the 2/3 point on the fluctuating moves. Another reason why125 was a strong Resistance Level is because 25 is ¼ of 100.
During the week ending June 7th, Vanadium broke the angle of 45° from the low of 87 on heavy volume, the total sales for the week being 237,100. The price got down to 100 and rested on the angle of 22 ½, or the angle of 2 x 1 from 37 ½. On June 9th, Vanadium broke 100 and, of course, was under the angle of 2 x 1 and declined to 89 ½, this time getting support around the gravity center, or half-way point, from 37 172 TO 143 172. However, Vanadium is in a weak position on angles according to the volume chart, and in a weak position on angles according to the weekly chart, without volume, and the Monthly high and low chart and nothing but a rally is indicated at this time. However, if it can hold for a while and not break the low of 37 on May 10th, it will indicate a better rally, probably 1/3 to ½ of the recent decline.
From the low on November 13, to the high in April, the total volume of sales was 1,672,600 shares figuring 25,000 to each 1/8 space to move over each week would bring this over to the 67th space, which I have marked, and you will see from the volume chart that this runs over which is due to the fact that some weeks volume did not equal 25,000,000 shares. We have to register the top and bottom and this throws us out a little on balance. In the weeks of May 3rd and 10th, the total volume was 614,000 shares, bringing the grand total u to that time to 2,282,000 which brings it to space 91, on the week ending May 10th and puts our volume chart 6 spaces too far over. Note that the volume of these two weeks was about 1/3 of the total volume from 37 ½ to 143 ¾ and, of course, wiped out half of the advance. Therefore, it is only natural that a rally should follow because the decline was too fast according to time. Bringing the total number of sales up to the week ending June 7, we have 3,170,800 shares. This would bring us to space 126, marked in red ink, and the way we have the volume chart, it is 8 spaces too far over. Therefore, the volume for the week ending June 7th, with the space movement rested exactly on the angle of 2 x 1 from 37 ½, and 101 to 100 ½ would strike up against this angle on the week beginning June 9th. The price on June 9th was101 ½ , and the stock declined to 89 ½. After a stock gets away from a narrow series of fluctuations with small volume and keep your volume chart exact, so as your angles will work out better.
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