Hello !
Key points :
It all starts with the halfway retracement. The stock makes a new low, buying pressure kicks in, drives price up. The halfway retracement is the result of traders taking profits, see how the volume fades ?
Anyway, the momentum is not enough to break through the resistance and keep the trend going, it reverses.
See how that 50% retracement seems to be a reference point, marked by the indecision candlestick (doji) and the spike in volume.
The gaps on the way up tell us that buyers are really aggressive (or covering their shorts).
On the way down, there's once again buying pressure (candlestick + volume) around that previous halfway retracement.
Note how the volume crumbles down and the bearish candlestick marks the last burst of the downtrend.
Volume is rising, there's still a healthy balance between buyers and sellers, we should see an increase in traded shares today.
Summary :
Thanks for reading and if you have suggestions or wanna 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.***
Key points :
- Double bottom
- Volume on uptrends > volume on downtrends
- Indecision + rising volume
It all starts with the halfway retracement. The stock makes a new low, buying pressure kicks in, drives price up. The halfway retracement is the result of traders taking profits, see how the volume fades ?
Anyway, the momentum is not enough to break through the resistance and keep the trend going, it reverses.
See how that 50% retracement seems to be a reference point, marked by the indecision candlestick (doji) and the spike in volume.
The gaps on the way up tell us that buyers are really aggressive (or covering their shorts).
On the way down, there's once again buying pressure (candlestick + volume) around that previous halfway retracement.
Note how the volume crumbles down and the bearish candlestick marks the last burst of the downtrend.
Volume is rising, there's still a healthy balance between buyers and sellers, we should see an increase in traded shares today.
Summary :
- Those that bought too early (circled zone) either sold or are still holding (an might re-enter or add to their loser)
- Some will probably buy the double bottom or the just the support
- It is very unlikely that traders are going to short this zone
- Those that have an open short position will cover
Thanks for reading and if you have suggestions or wanna 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.***