At exactly 17:00 yesterday I noticed massive trades go through ANG and AMS, shooting the price up. ANG went from 32501 to 33352. on value of R10 mill , while AMS had a jump to 116800 on R15 mill worth. From what I can see, yesterday should have been a pullback on ANG from breaking at 32550 or so, but now it looks like its gaining momentum?
I'm confused Roman... In Tango's thread of the SOL technical analysis just below you say "Yeah, I saw it too Tango!"... and now you asking about the "huge" volumes at close of day? Doesn't seem to fit... For someone to know that degree of TA but not realise it's the closing auction... But off the topic... What exactly constitutes a closing auction? Is it the big institutes that place an order but that only gets exercised at close of day?
all trading halts at 4.50pm and for ten minutes orders (buy & sell) are put into the market but do not match. Then at 5.00pm the system works out at what price the max volume will happen, and that's then the closing price. It could be (generally is) a number of people on each side and anybody can take part. Further the system will get you a better price if it can.
hehe, DC, lemme finish my coffee first! But for a share to jump over 700c in closing aution, yoh,must look crazy on the intraday graph! Are the happenings during closing aution any reflection of what happens during opening? So like in ANG's case, it would sem there's much more demand??
" In auctions all order sizes and order types (market and limit orders) are tradable, ensuring a concentration of liquidity in the order book. All auctions could operate in the same way, whether scheduled or initiated by extensions or volatility events. The market participants are informed when the securities will be called for the auction. Each auction consists of two phases:
1. Call Phase:
Each auction begins with a call phase. The market participants are able to enter orders as well as modify and delete their existing orders. Each participant firm may enter as many orders to the order book as it wishes.
Information on the current order situation is provided continually during the call phase with members being able to view best bids and offers as they would normally during continuous trading, as well as being able to see an indicative matching price and volume.
2. Price Determination Phase:
The auction price is the price with the maximum executable volume. Additionally the minimum surplus, the market pressure and, if necessary, the reference price are taken into account when establishing the auction price."
Call phase seems to be 6 minutes and price determination split into two 2 minutes.