May. 9 at 4:45 PM
$EGO printed a shooting star at descending resistance on Thursday—first clear rejection from sellers. But what matters more is what didn’t happen next: no follow-through downside on Friday.
Instead, buyers stepped right back in with a continuation close, pressing into falling wedge resistance + the 50 EMA overhead. That’s not breakdown behavior, that’s absorption.
Sellers are losing momentum at each rejection, while price keeps compressing tighter near the wedge apex.
Structure is simple here: coiling under resistance, higher pressure building beneath it. If it breaks, it’s a momentum expansion setup. If it fails again, it stays stuck in compression.
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