Sea Ltd stock analysis w/ boxes and Volume Profile

2021年10月26日

Hi everyone,

This time I am analyzing SE stock movement using volume profile besides my usual boxes setup.

SE stock price has shown very persistent up-trend strenght for the past year.
When we have the equity soaring up like SE does, it is helpful to use Volume Profile to see a bigger picture.

I added three volume profiles for different timeframes: 9 months, 5 months and 2 months.

What does it show us?

As we can see in the past 9 months the biggest trading volume occured around 273 level. That is where our long-term POC is.
However, a decent volume profile started developing from 308 level and above.
For the last 4 months the highest volume has been seen at 323 level. Both 2 and 4 month profiles have universal volume distribution with same POC level.

That means that higher price level has been accepted and stock is consolidated on a higher time-frame.

What now?

As volume profile is dynamic, I expect long-term POC to migrate to 320 level.
However, for that to happen we will need to see a lot of volume at 320, which is 7% lower than the current price.
AND that would be happening at the uptrend support line, which is dangerous.

IF that is broken, we could see a return to 273 POC to repair long-term profile structure.

IF we continue higher from here, we would get unevenely distributed profile, which could be bad in the long-run.

Let me know what you think of SE movement and if it is sustainable.

Trade wisely and good luck!
-----------------------------------------------------------------------------------------------------------------
Disclaimer!!!
This is not financial advise.