$Tempus AI(TEM)$ Understanding what happened on 21 Dec by applying liquidity theory.
Institutions steps in massively at ~32.5, possibly half of the green candlestick was institutional setup. This is confirmed by the RVOL (an indicator for unusual volume) and the lack of liquidity at the bottom of the body.
Retail traders then steps in to push prices up, thinking we've hit the bottom as insider selling seemed to end (news catalyst), and by ~33 institutions further assisted a little to reassure and attract more retail traders, leading to the consolidation of 3 long green candles followed by price consolidation at 35-36 before market closed. This is an institutional setup for an inducement.
The inducement hasn't ended. Breakout is at $40, where the bulk of liquidity rests. To confirm bullish trend, institutions will be incentivised to push prices down below 34.75 (an order block) to grab the liquidity resting there, thereby catching the 'morons' (a.k.a retail traders, a term by Jim Cramer) before heading up.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
