This is a Wyckoff based analysis.
As we can see in the cart, prices have been fluctuating between two channels, a great and a smaller one, both showed in the chart as the support and resistance lines in grey and blue.
We saw a clear stop, then a downtrend propelled by decreasing volume and a later spring that was tested two times, this shows us that it has a lot more relevance than we thought as the SMA's were crossing down.
Since the later test we could trace a trend line, that prices has not been breaking ( clear demand pushing prices up ) but in between these events, prices ran up to all time new highs, with just the same volume, as the spring we saw before; not a clear sign of strength, in that exact moment, SMA crossed up but just for a few periods until now, were we can see demand pushing prices up, but SMA making enough resistance to keep prices fluctuating between the bands.
I hope this idea was useful.
If so, have a great day!
As we can see in the cart, prices have been fluctuating between two channels, a great and a smaller one, both showed in the chart as the support and resistance lines in grey and blue.
We saw a clear stop, then a downtrend propelled by decreasing volume and a later spring that was tested two times, this shows us that it has a lot more relevance than we thought as the SMA's were crossing down.
Since the later test we could trace a trend line, that prices has not been breaking ( clear demand pushing prices up ) but in between these events, prices ran up to all time new highs, with just the same volume, as the spring we saw before; not a clear sign of strength, in that exact moment, SMA crossed up but just for a few periods until now, were we can see demand pushing prices up, but SMA making enough resistance to keep prices fluctuating between the bands.
I hope this idea was useful.
If so, have a great day!