sdl... what does the chart mean?

  1. 334 Posts.
    I just had a look at SDL daily chart, and am very confused.
    Certainly after a fairly long time of contraction in both price range and vol, I didnt expect SDL to trade down on big vol, but without breaking the congesting area. I would think if it trades down on big vol, it would close at low. however, on the other hand, it was not so surprising because orders on both sides had been so thick.

    Now the bollinge band still tight. everything seems same except the usually big vol and a new low in weeks.

    I know many people holding SDL as well as a positive view, PJ posted an artical before suggesting "If heavier volume appears at the low end of congestion area, buying is being supported and prices tend to go up after breaking out of the upper price resistance level"
    Could this be the case?
 
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