medium · Volume Spread Analysis background-trend-context
A stock approaches its upper trend line (supply line). The spread is narrow, and the volume is significantly lower than the average.
What is the most likely outcome at this boundary?
- The trend line will hold and price will likely reverse downward.
- A strong gap-up through the supply line in the next trading session.
- An immediate breakout occurs as all remaining supply is fully exhausted here.
- Absorption of the supply line, then a quiet sideways grind.
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