Wyckoff trading method, page-1180

Nope you are right, that looks like a failed test for sure, however there was no serious downside follow through after it appeared, just that single downbar, then an upbar. So in a way it is treated similar to an 'upthrust, in the wrong place" (which I have discussed before), this is probably a failed test "in the wrong place", and is probably representing absorption of supply in this case.
When you see a particular principle, the response confirms it, and if the response is different to what is expected, you need to change your thinking.....because sadly, in the real world the charts don't always respond in a 'textbook manner'....so you need to be a little flexible in your thinking at times.

and finally, yes that is a confirmed test....but be aware the stock now appears to be in a downtrend......and tests are usually not at their best in a downtrend, or their response can often be subdued in a downtrend. You can still trade that set up if you want, but just be aware of the circumstances that surround it....and be nimble when required......and don't worry about missing some of the action.

Perhaps these two quotes might help a bit.....







cheers