Bank of America (BAC) Topping Tail
A Topping Tail (TT) that forms after making new new high communicates that seller are taking advantage of that strength in the moment to take profits. The TT that formed can after a period of consolidation, which should not happen. Breakouts to new highs — after a consolidation — should close near the high of the day.
Master Traders don’t short this type of Topping Tail since it occurs within an uptrend and support is below.
Ideally, the TT is ignored and prices move higher, which would signal strong demand where buyers are still in control. A sideways correction over a few days would be bullish also. A move under the prior low would be bearish.
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