Double Top revealedOleg Alexandrov
I know, this chart is not very useful because you’ve never been trading this #stock #HALL. However, it provides the perfect example of Zone of Weakness. Classical Technical analysts should interpret it as simple “double top”. But we are chart readers, and we can see more about this pattern.
- 1) Buying Culmination as price hit 20.0 round number after long bullish run. Highly likely, some “good news” was released those days. But the volume is extra high. Professional traders like these broad markets because it allows them to distribute (SELL) big orders of #stocks.
- 2) Here is the Selling pressure wave. It culminated in minor Panic Selling day (3) around 17.60
- 4) You can suggest, this is NS+DB. Very tricky moment. It seemed that bulls attempted to breakout above the previous high…
- 5) …but here we have too much volume on up-bar. Is it a hidden weakness?
- 6) Yes! This is supply bar, this day erased all Bullish progress and Trapped buyers. Here is the bearish Cha Cha. Chart testifies market is not interested in moving higher than 20.0.
As we can calculate target projection from the width of wedge, the low around 15.20 is expected.
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