One of the most powerfully bullish patterns that I know involves an instrument which gaps higher on explosive volume, builds on those gains for a day or so, then spends the next week or two consolidating those gains on declining volume. This price action tires out the fast money that entered the game on the breakout and attracts opportunistic bears looking for a reversion back to the mean. The chart pattern begins to resemble a coiled spring. And when it Pops!? — the next move can be powerfully higher and sustainable.
We’ve got a situation like this developing now.
For access to JC and Sean’s options strategies, you must be a premium member of All Star Options. Please login below or start your risk-free 30 day trial today.