1) Selling cilmaxes can and often do make a lower low on the secondary test, also not a confirmed selling climax as it's possible it's just a preliminary support level (you can never really tell until after the fact which is why its important to wait for confirmation in the form of SCLX->AR->ST->rally off ST. 2) the amount of underwater holders and supply created by the distribution/gap down creates a huge amount of left hand side pain which needs to be absorbed before it can rally - this can take months->years 3) for an accumulation to have a higher likelihood of being confirmed there needs to be multiple tests of the demand zone and for buyers to always set up and confirm demand, which creates channel divergence and increases likelihood of testing the supply line 4) break out of supply line is best sign that stock is no longer being distributed - notice how when stock met the last point of supply in January it began falling as this was the last point where it encountered supply and then made a move to test demand
NEA Price at posting:
$1.52 Sentiment: None Disclosure: Not Held
