medium · Volume Price Analysis support-resistance

A stock breaks above resistance on high volume and then consolidates for five days. During this consolidation, the price touches the broken resistance level twice. Each touch occurs on progressively lower volume. This signifies:

1. A distribution phase where insiders are slowly offloading accumulated shares onto unsuspecting retail buyers.
2. A 'decay' in selling pressure, confirming that the insiders have successfully cleared the path for higher prices.
3. A classic 'Topping Out' sequence, where volume is required to steadily increase at each test for price to move higher.
4. A clear lack of momentum, suggesting the breakout trend is about to fail and reverse back into the prior congestion zone.

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