medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
A stock breaks below a long-term accumulation range at $25.00, dropping to $23.50 on ultra-high volume, and closes at $23.60 (near the low).
Is this a 'Spring' or a 'Genuine Breakdown'?
- It is 'Stopping Volume,' a clear sign of professional absorption of supply, which will immediately lead to a fresh mark-up.
- It is a 'Spring' simply because the price briefly penetrated below the long-term accumulation range's previously stated support level.
- It is a 'Shake-out' engineered to scare out the last of the weak holders, and it just requires one more day of confirmation to prove it.
- It is a 'Genuine Breakdown' because the ultra-high volume and low close indicate that massive supply is still hitting the market.
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