HAV - Havillah Resources, I marked out a solid Wyckoff structure on the Daily, they don't always fit this well.
It appears to have gone through redistribution recently and straight into its next structure, could safely bet with these decreasing volumes near the previous SCX that this is a Secondary test but may trade lower than the Selling Climax first before retesting the highs of the AR. It's still too early to know whether it's accumulation or redistribution but it's certainly not trading at its top anymore so the case for Accumulation will be getting stronger.
Once Phase A Stopping Action is complete with a ST, we will move into Phase B where a 'Cause' for the next potential move will be built. Wyckoffs Law of Cause and Effect looks to effectively 'fuel' the next move up or down by consolidating price through a trading range, building up the necessary power to provide another Change of Character from sideways to trending up or down again. The longer the cause, the greater the potential move if the 'fuel' or 'charge' has been built well. It could be likened to a golf swing, a short pullback and strike being the 'cause' and the flight of the ball as the 'effect', a club in the hands of an expert with a decent swing (a well built 'cause'), and the effect will be "To the Moon" in the case of an Accumulation or "Through the floor" if Distribution.
Just to clarify, a 'Change of Character' is when price changes from one trending direction to another, whether that be uptrend, sideways in a trading range or downtrend. This COC can only happen in Phases A and D, Phase A with confirmation of Stopping Action (Stopping and changing the trend) being Selling Climax, Auto Rally/Reaction, and Secondary Test, and Phase D with Mark up or Mark down inside the Trading Range before confirmation of COC by Phase E being Mark up outside the Trading Range.
Cheers
