An impulse BULLISH day with an above average volume causing shorts to be covered as well as new long positions being initiated may sum today’s price action with BOQ. Another example of a SPRING ( Bear Trap) for those traders who may have gotten bearish on a break below the low made on the SCLX day (25/08). We can and may pick the motives of the SMART MONEY with Wyckoff Analysis in most cases. Is Wyckoff Analysis a silver bullet ? NO. But it may help in identifying some turning points.
Not a perfect Wyckoff accumulation pattern, but important ingredients are there in this potential accumulation phase on hand with BOQ. Today’s price action may also be interpreted as a JAC ( Jump across the creek). Resistance set by AR after the SCLX may be tested in the days ahead. We are still in the accumulation “C” phase, with two triggers for a LONG ENTRY if Wyckoff Analysis is applied. A retest of the $12.00 zone if occurred, will mark the end of our “C” phase, entering into “D” and “E” thereafter.
Any pullback to the JAC zone around $12.00 which is also a GAP UP zone is expected to find support if occurred.
The XABC correction with BOQ, like most other banks, was taken from the April high.
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