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home | Base Behaviors | Contracting Price Range

Contracting Price Range

Note:  The historical stock examples given below are for EDUCATIONAL USE ONLY.  They ARE NOT to be used to make buy/sell decisions in today's market.  For more information, please read the HSR Terms of Use.


Price declines, but its range contracts on an increase in volume.

Behavior Note:  Price usually closes lower for the week, but the close may be at the midpoint (or higher) of the week's range.

What you need to know

After a decline, Contracting Price Range on an increase in volume is a sign of accumulation.

This supportive price action suggests that institutional investors are aggressively absorbing any supply (selling) that's coming into the market because price can't move much lower despite the heavy volume.

Historical Stock Chart Examples 1A & 1B:  Energizer Holdings (ENR) 2006-2007

Click to enlarge 1A

Click to enlarge 1B

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