Price action & Psycholog - Pullback and gaps
Hello !
Key points :
The support is on an important zone on the weekly chart, which explains why the breakaway gap formed. I can imagine people thinking "if it's not holding the support I'm selling" and some people started (probably because the overall market was weak) bidding lower prices pre-market.
On the way up, it is very clear that the stock encountered a resistance on that particular zone. The fact that it broke out, means that there has been a psychological shift in people's thinking. Which makes this zone now a decent support.
***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities, it only takes ONE trader to deny your trade.***
Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.
Key points :
- Support : important zone on weekly chart, amplified by breakaway gap, previous resistance on daily chart
- Pullback 50% Fibonacci
- Exhaustion gaps coupled with higher trading volume
- Despite the market drop on friday, it held the support
The support is on an important zone on the weekly chart, which explains why the breakaway gap formed. I can imagine people thinking "if it's not holding the support I'm selling" and some people started (probably because the overall market was weak) bidding lower prices pre-market.
On the way up, it is very clear that the stock encountered a resistance on that particular zone. The fact that it broke out, means that there has been a psychological shift in people's thinking. Which makes this zone now a decent support.
***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities, it only takes ONE trader to deny your trade.***
Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.
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