Few Technical Terms Related To
Trading as well as Derivatives
Long Buildup:
Volume traded/Open Interest is increasing along with an increase in price.They are generally most suitable for a breakout and a buy candidate "technically".
Short Covering:
Traders who have shorted their positions on stocks ie who have sold the stock beforehand expecting that the price will go down, are buying them back ie covering their positions in order to cut down on their losses.It basically shows Bulls are winning and the stock might be a "turn around the story".
Long Unwinding:
Unwind means offloading your position. Long means going long with your stocks i.e. holding a stock for a longer period.Long unwinding means selling the positional stock or selling the derivative after a sustained increase in long position as some downside in price is expected after a huge build-up of open interest which is not sustainable.
It basically means that bears may be expected to win in the near term.
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