**** Just a quick little explanation and clarification about "Absorption"
In the case above, I am suggesting the the buyers are attempting to absorb the supply coming from sellers, most particularly because it appears the overall influence of the chart has now changed back to bullish (after the washout from the announcement of a capital raising), and also the general nature of the bars.
It also needs to be pointed out that at certain times, the sellers can be the ones absorbing the buyer's (most particularly when finally closing positions near the end of a selling event, and also when setting up new short positions - this is fairly regularly seen in the futures markets, when prices are generally trending lower, and it happens most often during the little counter trend rises in price).
When this happens, instead of price grinding higher with narrow spreads, mid to high closes, and a pressing nature to the upside, this time price is often seen with narrow spreads, repeatedly closing mid to low on the bar, with no positive responses to the upside (when they may be anticipated or are expected), and a slowly diminishing price (almost like the mirror image opposite to bullish absorption).
Both can be hard to be sure about at certain times, and can cause quite a bit of angst (if you hold a position), while waiting for the chart to resolve, and show its true intention.
