MyTradingJournal

Price Action & Psychology - Breakout, pullback

Long
NASDAQ:FRAN   None
Hello !

Key points :
  • Double bottom ignites the breakout
  • Breakout from the significant confluence area on high volume
  • Pullback halfway
  • Low volume + indecision
As you can see on the chart, that 3.00 zone is important. The stock made a new low and encountered that old level (circled on the left side) as a resistance a few times.

The breakout from that zone, considering the spike in volume indicates a psychological shift.

The stock retraces halfway, due to profit-taking. That is reinforced by the fact that the volume shrinks a lot.

Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.

***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***

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