$ENA Since October has two volume clusters of nearly equal size, and the price is trapped between them.
The upper cluster is the POC at 0.206, accounting for 7.6% of the month’s volume. The lower cluster is 0.188–0.190, also at around 7.3–7.6%. The price at 0.191 is just above the lower cluster. 84% of the month’s volume is above this level.
The two clusters create two different dynamics:
Whenever the price rises to 0.21–0.22, it reaches an area where a lot of buying took place. That supply gets sold, so each peak is lower than the last. That’s the downward-sloping part of the sideways action.
Whenever the price plunges to 0.17, it moves outside the area where trading has taken place. There is almost no volume below 0.184. No new sellers follow through, so the wicks are bought back right at the 0.188–0.190 shelf. For this reason, all three dips—to 0.174, 0.166, and 0.182—closed back around 0.19.
The price has not been accepted below this level, nor has it been accepted back at the POC. It is sitting at the point where the most trading took place on the lower side in October. Only a session closing below 0.174 would turn that shelf into a broken-down area.
The upper cluster is the POC at 0.206, accounting for 7.6% of the month’s volume. The lower cluster is 0.188–0.190, also at around 7.3–7.6%. The price at 0.191 is just above the lower cluster. 84% of the month’s volume is above this level.
The two clusters create two different dynamics:
Whenever the price rises to 0.21–0.22, it reaches an area where a lot of buying took place. That supply gets sold, so each peak is lower than the last. That’s the downward-sloping part of the sideways action.
Whenever the price plunges to 0.17, it moves outside the area where trading has taken place. There is almost no volume below 0.184. No new sellers follow through, so the wicks are bought back right at the 0.188–0.190 shelf. For this reason, all three dips—to 0.174, 0.166, and 0.182—closed back around 0.19.
The price has not been accepted below this level, nor has it been accepted back at the POC. It is sitting at the point where the most trading took place on the lower side in October. Only a session closing below 0.174 would turn that shelf into a broken-down area.