Confirmation of no supply on ROYL, long for aggressive traders

261 0 1
Be careful: this is a low cap stock and the analysis below is purely technical. Please check fundamentals of the company.

1 - After a period of accumulation (high volume on down candle but little downswing and tight closures), we have an up-thrust on ultra high volume that closes on its low but next candle is up on high volume: supply/demand dynamic is changing in favour of buyers
2 - The resulting uptrend is on low volume and candle number 2 is an up-thrust on low volume: lack of demand. Buyers are not ready for higher prices yet
3 - Again, lack of demand
4 - Strong rejection to new lows: reverse up-thrust on ultra high volume
5 - Failed test: previous bar is an up-thrust on very low volume , a test of demand, but candle 5 closes higher on increasing volume . This candle closes in its middle: sellers are still present
6 - Price retraces to find out the strength of the selling pressure but the retracement is on decreasing volume and candle 6 is a test of supply
7 - This candle confirms the test: it closes on its highs on increasing volume , a good long entry
United States
United Kingdom
Home Stock Screener Forex Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Account and Billing Sign Out