VWAP “From the Event”

Volume Weighted Average Price (VWAP) from an event often gives us valuable insight into the psychology of the market. For recent IPO s, I find the VWAP from issue date is often a key level to be aware of as potential support or resistance. Last week I pointed out the potential for resistance in $BABA near the VWAP from IPO and today we saw that the VWAP from IPO in $GPRO was tested. For BABA, a short term pullback developed at this level. For $GPRO we may see resistance, but we will only know after the fact if it is actual resistance. Doesn t it seem like a good level to be aware of? Anytime you consider buying or selling a stock answer: 1- Where has it come from? If a stock has expended a lot of energy to get to where it is then it may be due for a consolidation or pullback. This is where you want to assess where a stop would go if the market disagrees with your timing. This is the basis of our percieved risk. For GPRO, the stock has rallied over 10 points (over 20%) in the last two
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