$GRT — what a move back below resistance means
For $GRT , one of the weaker scenarios is a false breakout above the upper boundary, followed by a return inside the range. In that case, the midpoint becomes the first reference level, followed by the lower boundary if selling continues.
The key sign here is an inability to hold the area reached. The weaker the attempts to move back above resistance, the less reason there is to consider the initial breakout sustainable.
The opposite signal is a recovery above the boundary and holding it as support. That is why it is important to watch what happens after the breakout: it helps distinguish continued growth from another move within the range.
For $GRT , one of the weaker scenarios is a false breakout above the upper boundary, followed by a return inside the range. In that case, the midpoint becomes the first reference level, followed by the lower boundary if selling continues.
The key sign here is an inability to hold the area reached. The weaker the attempts to move back above resistance, the less reason there is to consider the initial breakout sustainable.
The opposite signal is a recovery above the boundary and holding it as support. That is why it is important to watch what happens after the breakout: it helps distinguish continued growth from another move within the range.