medium · Volume Price Analysis support-resistance

A trader sees a wide-spread bullish candle closing at its high, but the volume is only 30% of the average. The price has just cleared a minor resistance level.

What is the most likely institutional action occurring here?

  1. This is a successful test of supply indicating a clear path to higher prices.
  2. Insiders are aggressively accumulating shares to start a new markup phase.
  3. Insiders are marking the price higher on minimal volume to trap late buyers.
  4. The market is in a short squeeze where shorts are forced to cover at any price.

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