easy · Volume Spread Analysis climaxes-tests-springs-upthrusts
The market has been rallying for three months. A stock hits new high ground on excellent news, showing an ultra-wide spread up on the highest volume seen in a year, yet the close is in the middle of the bar.
What is the most likely outcome of this Buying Climax?
- Professional distribution leading to a potential top
- A shake-out designed to remove weak short sellers
- Strong institutional buying indicating a trend continuation
- A successful test of supply ensuring further gains
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