Wyckoff trading method, page-485

Yes, Testing (for supply) is generally a narrow spread downbar, closing mid to high, on lower volume.
Testing (when successful) is a sign of potential strength.
And a successful test, is one where the next bar is up (although a secondary test is also acceptable, especially if it draws out even lower volume).

On that chart you posted, is a bit of a rough looking test (although it does meet the criteria, so the expectation would be for the next bar to be up).

That said, it appears to me that price has been finding some supply right up at the previous highs.
But in the face of this supply, price has not broken down, when this happens it usually represents an attempt to absorb this supply.
And if the supply is successfully absorbed (and does not become overwhelming), price will possibly move higher in response.



cheers