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Here's a setup that I will be monitoring this week. It's a good follow up example from the article I wrote for eSignal Central, "The Importance of Volume". This play is one of the eSignal "Power Scan" results.
FOLLOWING THE BEARISH GAP ON OCTOBER 23, MACR HAS ATTRACTED A MASSIVE AND CONSISTENT INCREASE IN VOLUME. IN SPITE OF OCTOBER 30TH’S PRICE ACTION, THE BEARISH CANDLE HAS TRADED AND CLOSED ABOVE THE BEARISH GAP OF OCTOBER 30. ADDITIONALLY, MACR’S PRICE ACTION INCLUDES A VWAP IN THE UPPER 10% OF THE LAST CANDLE’S RANGE. A VWAP CLOSE AT THE HIGHER END OF THE TRADING RANGE TELLS US THAT INSTITUTIONAL VOLUME MAY BE FACING A SHORT SQUEEZE. THESE COMPELLING TECHNICALS ALONG WITH A RISING VOLUME MA, STRONG OBV AND MASSIVE 200% PLUS INCREASE IN VOLUME STRENGTHEN THE POSSIBILITY OF MACR TO FILL IN THE BEARISH GAP AND TRADE INTO MAJOR RESISTANCE.
FOLLOWING THE BEARISH GAP ON OCTOBER 23, MACR HAS ATTRACTED A MASSIVE AND CONSISTENT INCREASE IN VOLUME. IN SPITE OF OCTOBER 30TH’S PRICE ACTION, THE BEARISH CANDLE HAS TRADED AND CLOSED ABOVE THE BEARISH GAP OF OCTOBER 30. ADDITIONALLY, MACR’S PRICE ACTION INCLUDES A VWAP IN THE UPPER 10% OF THE LAST CANDLE’S RANGE. A VWAP CLOSE AT THE HIGHER END OF THE TRADING RANGE TELLS US THAT INSTITUTIONAL VOLUME MAY BE FACING A SHORT SQUEEZE. THESE COMPELLING TECHNICALS ALONG WITH A RISING VOLUME MA, STRONG OBV AND MASSIVE 200% PLUS INCREASE IN VOLUME STRENGTHEN THE POSSIBILITY OF MACR TO FILL IN THE BEARISH GAP AND TRADE INTO MAJOR RESISTANCE.