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About the MOB Index Ownership Level
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Using the MOB Index Ownership Level Analysis
The "MOB Index Ownership Level" Analysis offers investors a unique view on trading data. The "Ownership Level" Analysis tracks the amount of shares ("volume") that were traded at each price range for the market's tracking index. When a large volume of stock accumulates at a certain price range we can assume that this range represents a high level of investor emotion for the market or the stock at that price level. A price level of high volume accumulation could mean the beginning of an intense period of buying or selling, and usually marks the establishment of a new resistance or support level.
Knowing at which price investors have bought their stocks or other securities is a crucial piece of information when trying to determine future price movements in securities markets.
In the Table below, a large number of German market investors bought stock when the DAX was at levels between 4702 and 4894. When the market went down to levels below 4500, many of these people will think "as soon as the market goes back above 4702, I'll dump the stock and at least get out even or with a small loss!". When the DAX does go back up to 4702, these people will start selling, driving down prices again. If enough people bought stock at the 4702-4894 levels, it will make it difficult for the market to go above those levels.
Table
This phenomenon is known as "resistance", with its opposite (when a market doesn't seem to go below a certain level) known as "support". Without tools like the MOB Index Ownership Level Analysis it is up to individual investors to estimate the price level and strength of support and resistance levels.
The importance of knowing the Ownership Levels of a market at each price level is an important factor to consider when making investment decisions.