A Healthy Pullback?

25 Sep

On a line chart, the pullback we’ve seen appears to be quite healthy. We remain in the trend of higher highs and higher lows, with the Ascending Triangle pattern prevailing. Notice how every time we touch the trend line we move higher off of it.
When a market moves sideways or pulls back slightly look to volume to determine if it is a temporary breather, or a change of trend. If volume decreases after a move higher is it expected that prices will continue in the direction of the trend. If volume remains high during a period of sideways action it is an indication that sellers are becoming stronger and could signal a turn in trend.

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