Looks more like price may be breaking down through potential support.
It is a good thing though, that you are looking for things like springs, so you are ready to trade them when they form.
A spring on a daily chart, would normally have formed pretty quickly (and would generally react higher quite quickly as well).
So after the first day, and a spring didn't form, then you were looking for a possible reversal, but that didn't happen either, and price continued lower (in some way also confirming the weakness).
That said, you could still see a spring on the weekly chart....... although it probably wouldn't be a great one.......
Just a couple of things about springs-
They work best, most consistently, and strongest, in uptrends, breakouts, or right at the end of accumulation zones.
They work worst, least consistently, and weakest, in down trends, breakdowns, and at the and of distribution zones.
^^mirror images of each other^^
And little springs seem to work much better than big fat meaty springs --what I mean here is that only a slight or shallow dipping below potential support (to form the spring), then a fast recovery back above the support line works best.
So it is really just a test of the resolve within the market, and then a quick recovery (not a deep stop run), which proves the support is actually there, and it is strong, which works the best.
Big fat meaty springs, are generally weaker in both strength and consistancy.
When the spring dips deeply below support it often shows that there is some serious selling pressure coming in, and the support has to work very hard to absorb the selling and get price to recover back above support.
When this happens, it may be an indication of serious supply entering the market, which will thwart an up move (and reduce its strength), and perhaps eventually overwhelm price and cause it to breakdown below support.
hope that helps.....
cheers
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