After a Selling Climax (SC), Automatic Rally (AR) and Secondary Test (ST) in Phase A we have now seen the bottom of the range being tested a second time. This looks a lot like a potential spring in Phase C but we have not seen a good contraction in volume in Phase B so this still could just be a test of the TR. However, the result should be the same with a test of the top of the TR. We have seen a significant bar confirming the reversal.
Comment:
There has been a deep pullback an is testing the spring. Will watch for how it reacts to the lows. Some key observations are that volume has been low on the pullback and there is divergence with the Volume RSI.
Comment:
Price action has been very week with lower highs and lower lows. However, with declining volume and divergence in the volume RSI there could be some hope for Discovery. We will watch this one as it develops.