Hi Trim,From the latest low, you can see the little narrow...

Hi Trim,

From the latest low, you can see the little narrow spread bar with the high volume, that is currently strength in the background.

All that buying there causes a temporary imbalance in the supply and demand, so without any real sellers, the shareprice can drift up easily on quite low volume, until it starts moving into the bottom of the bar you have marked the close of at $2.009.

You see that up bar has closed just below mid bar, almost forming a micro up thrust (well sort of).
That bar shows there is some supply (sellers) appearing, so the next bar they test (the little Red down bar), but find supply is still low, when they are testing any abnormal or high volume, you can guess they are bullish.

This low volume test gives them the confidence that there is little supply below them so they take it up for two bars, volume increases and both bars close high on the bars.

This looks like potential absorbtion volume (the only time high volume on an UP BAR is bullish), pushing through short term resistance (which you have marked), then they test straight away.

Pro's always test for supply if they are bullish.

They then mark the SP up again for two bars, up to the top of that bar we are looking at, and test again.

Still bullish.

They then mark the SP up again, into the bottom of the bars at the previous tops (to the left) and tested again on Friday.

They may get resistance at those tops, or they might keep absorbing supply and keep pushing through.

It's not ready yet, if anything they look still bullish, although those old tops may cause some ST problems.

Fridays bar was not No Demand (UP BAR closing, mid to high, on less volume than the previous two bars, usually on a narrow spread), Fridays bar was a DOWN BAR, so it looks more like they were testing.

Watch to see what happens as they push higher to the old tops, if you see some sort of climactic action, or gap up narrow spread bars on high volume, followed by an
upthrust or No Demand (or both) THEN you could look to go short.

On the other side of things, an agressive long entry was
seen on that first test (the secondary reatction) or the reaction bar, after the last bottom, or the test (or the reaction bar) after the potential absorbtion volume.

That's how I see it anyway

Hope this helps

Wonder what dg, has to say.

cheers