equivalent spreads in the waterfall, the volumes should be MUCH higher, so

clearly
selling is being absorbed at this level. Duke Energy attempts to rally, this
time with
a bullish engulfing candle, but the volume is average once again, and clearly
this is
not a sign of strength just yet.
The market then pulls back with two small hammers on low volume. Is this
the final
phase of mopping up the selling pressure? The answer is delivered on the
next
candle with a LOW VOLUME test. The insiders are preparing the ground.
The
selling has been absorbed, the market has been tested for further selling, and
the low
volume test signals success, Duke Energy is now primed and ready to move.
The stock moves higher on good volume and is subsequently followed by a
gap up
day, supported with strong volume, not a trap up move but a genuine move
higher.
The insiders are joining in! Then we move into a congestion phase, followed
by a
further gap up and breakout on high volume, and from this move, the stock
price
then declines slowly lower, BUT note the volume. It is low! An anomaly! We
can be
pretty sure that the stock price is not going to fall far. After a c faing pll, if it
were,
we would see high volume and this is certainly not the case with below
average
volumes.
The final candle in this group was then followed by a bullish engulfing
candle, and
the following day, with a gapped up move higher. HOWEVER – note the
volume on
the gap up, it's LOW. Is this a trap up move by the insiders? It certainly looks
weak,
and the volumes following the move higher are well below average. But note
where
we are in the overall price action. We are back where we started in terms of
price,
and this is therefore an area of potential price resistance given the earlier
failure at
this level. So we should be DOUBLY on guard. A gap up move on low
volume, and
resistance ahead !!
So what happened next?