Huntingdon Bancshares (HBAN) is one of those steady low-cost stocks which continues to produce an even climb rate on the daily chart, but one which demonstrates some important volume price analysis lessons in the trend higher. Once again it was the VPOC that confirmed the congestion phase for this stock as it oscillated around the $9.50 per share price for much of last year before finally breaking higher in November on the weekly chart followed in mid-December by a minor pullback. However, note the volume, it is extreme and is in fact the highest on the chart and a clear anomaly. Why? Because if this stock was going to sell off heavily in the week as suggested by the volume, then this candle would be widespread and down, but it is not. It is quite the opposite and signals the market makers are buying and we can expect higher prices to follow.

This pattern is then repeated in late January. Once again we have a narrow spread-down candle on high volume, a clear anomaly and signaling more buying by the market makers. This is the advantage and edge that volume price analysis gives both traders and investors. In other words, it reveals what the insiders and market makers are doing and from which we can then interpret the next phase of price action. Finally, in March we see another and is followed by further buying on the deep wicked candle which follows. So a nice steady stock that moves higher in measured steps, but be aware we are now in earnings seasons and quarterly results are due on the 22nd April for this stock. Last time around it was a miss by 0.2 cents per share against a forecast of $0.29. This time around forecast is $0.32 EPS.

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