Stocks that are in an uptrend and gap higher are susceptible to pullbacks, which are normal. One of the price reversals in this stock is what we call a “Bear Sandwich” that started to provide a bullish information.
When they don't pull back, rather trade sideways that's bullish price action. The price action during that sideways price action can provide clues to the forces of supply and demand. Which is stronger than the other.
The Bear Sandwich reversal and consolidation day afterward at the top of it signals that buyers continue to buy in this area.
Today ZEN formed a Bottoming Tail (BT), so buyer stepped up on the intra-day dip. The daily chart of ZEN below.
NEW TRADE IDEA: 8/15: ZEN – Over $64.13, consider buying stock. Breakout from bullish consolidation above r20/50-MA after Pro Gap Breakout daily. Stop Loss: $61.98.
The Broader markets came back from the early drop to rally to the high or Monday's bearish candle. It neared the highs of the day around noon time and was able to hold those gains into the close. So bears had their chance to take control and could not.
This suggests higher prices, but the trigger needed is to trade above Tuesday's high. Stay Tunned!
Daily S&P 500 ETF symbol SPY
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