$NWH pennant

A nice pennant forming here on $NWH. Low volume red bars compared to green bars is very constructive as it shows a lack of supply. Watch for volume if/when it breaks $1.20.

The weekly chart is showing that the long-term trend is now in Stage 2 (Markup phase) so can continue to watch for a long-term long signal.

Commentaire:

Strong breakout today after clear signs of absorption yesterday (strong close on good volume at the top of the pennant). It's always good R:R to initiate a position prior to the breakout when this occurs.

In my opinion, the best place to learn absorption is David Weiss' book Trades About to Happen (Chapter 7).