medium · Volume Price Analysis
A stock breaks out above a resistance ceiling at $62.00. Two days later, a candle dips back to $61.80 but closes at $62.15. Volume is 35% of the average.
What does this indicate?
- The breakout has failed and a 'trap up' is in progress.
- The insiders are selling to retail traders at a premium.
- A 'Price Waterfall' is imminent as demand has evaporated.
- The old resistance has successfully flipped to new support.
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