This chart is becoming a bit technical, and is probably not a great example to learn from (as 'text book' learning is probably best to use first, and then adapt it to the real world).
However, it appears that an accumulation may be taking place, and that is why we are not seeing price move at times where it appears to be in a good position to do so.
So if price does seriously break down again, then my analysis of the situation is probably wrong (rubbish).
On Thursday, volume was very low again, and price moved higher, only to close in the middle.
Then on Friday, price again pushed higher, but this time on a sharp increase in volume.
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So I suppose that a bit of a chat about accumulations may be in order.....
Generally in the 'test book' world, an accumulation takes place on down bars, where the professionals let the price come down to them, usually on bad news, either at an individual stock level, the sector level, or the overall market level (which is why the saying says- "strength, when it appears, will be see on a downbar", and as you will see, that's' why I changed it slightly to- "strength, when it is appears, will initially be seen on a down bar").
This is because sometimes, for the professional traders to accumulate a meaningful amount of stock in a tight market, they may also need to buy 'up' in price, as well as letting stock come to them on down bars.
And on this stock, I can see where this may be taking place, which may make the analysis a bit confusing for those just starting out.
In a nutshell, the larger accumulators will, without warning (and often straight after the open), buy price towards the upside, and almost all in one go (up to a limit), and at these times it will appear that they have bought the entire 'offer' stack.
But after buying 'up', they will not support any further rise in price, they will either stand aside and allow the price to slowly fall back to where it began, or they may even choose to sell a few, to start the price to fall away (and in doing so, trapping any retail momentum traders into a losing position and forcing them to sell, which in itself may start a domino effect), this is because if they are accumulating, as they do not want price to take off (yet) until they have bought up a meaningful amount of stock. Then generally price will fall right back to where it began, or even a touch lower (and at the same time this fall off in price will help to rebuild the 'offer' stack, which they can buy again if/when they choose). This sort of price action can happen over and over, and can be very frustrating for the retail side of the market. It can also leave a nasty 'gut feel' in the market, which will also help to wrong foot the retailers and get them out of the market (which can be an advantage for numerous reasons, I'll explain that later).
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So while NWZ appears to be in position for a move towards the upside, and has been a few times recently.
Don't be surprised if it instead comes off unexpectedly, in an attempt to wrong foot, & flush out more stock from the retail side.
If this is all correct, when it is ready, a mark up will begin to take place, and at that time a complete transformation in the 'price action' will be seen.......
