I’ve noticed this stock trading in a ridiculously tight range for the past 6 weeks since it gapped up by about 22% on 8th July. Here’s the chart for evidence:
Note the most recent bars on the far right hand side.
How would you explain this? My thesis is that institutions have now bought so much of the company’s total shares (around 95% according to SimplyWallSt) that it is very difficult to move the price if they are simply holding for now.
This to me would suggest to be a bullish sign if I’m right, as any significant increase in buying activity would drive up the price rather quickly if there are few institutions actually selling!
Am I wrong in my thinking here or is this a good opportunity?
Forgive the lack of any discussion of the fundamental business in this post, I’ll keep it short. If anybody has more insight into Varian’s core business then please feel free to discuss!