Possible Breakout But…


Here we see the Cubes gap up at the open and rally on increased volume to close above the recent highs and above the 50-day EMA.  BUT: The rally came on below average volume and the market sold off some in the final 30 minutes, which shows on this chart as an upper shadow on the daily candle.  Click through to the continuation of this post to see the intra-day action.


Here we see a 2-day, 15-minute chart.  You can see the gap up at the open and the 2-hour rally on expanding volume.  Looks good so far.  Then you see the tight range on low volume until 3:15 PM.  Still looks good.  Then you see the selling on increased volume into the close.  Raises a question mark for the day’s action, although bulls will note the rally in the final minutes of the day, which took the Cubes back above the 50-bar EMA.  So what’s this all mean?  It means we got an unconfirmed early breakout with a couple of yellow flags present.  So we still have to wait for confirmation or failure of this move.  Cheers!