BDL - An update and a VSA Learning Exercise

há 5 dias

This is just a learning exercise. We had anticipated a good move from this stock. However, 1230 was the trigger point for the Up move Now let us do a bar to bar analysis.
Refer the box marked “A”. We can see there was a sideways move or a consolidation happening. We can see the prices clustering together and the volume became low. It Indicated accumulation going on.
Refer to the bar marked “B”. It is an up bar with increased volume. This bar was an indication that things are about to change.
Refer to the Bar marked “C”. The next bar is a wide spread bar going past the trigger point, ending near the top. Also, we can see the volume increased volume indicating a high probable Breakout.
And today's bar (marked “D’) opened up above the previous close. The bar did see some selling, but finally it overcame the selling and closed up. Of course, the spread was not, the spread was narrow indicating selling pressure still present.
We can see the stock has started its up move and it is all supported by increased volume and the momentum. The price action momentum is also driven by volume and we can see increased relative strength. All that support further up move and the first obstacle we could see would be 1365, where we may see some more consolidation before further up move. This whole exercise is just for learning purpose.