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soxx soxs soxl parabolic climb reversal pattern

$SOXX $SOXS $SOXL A weekly reversal (or "blow-off top") at the peak of a parabolic climb usually triggers a sharp, violent drop. The rise of a parabola is driven by hype and FOMO; when it breaks, prices often drop back by half or more in a short time. After this pattern, there are usually a few stages: Initial Panic (Exhaustion & Breakdown): The reversal candle closes below the parabolic support line, meaning buying energy has vanished. Volume spikes as late buyers and squeezed shorts rush to sell. Re-Test: Prices might briefly bounce back, but it's often just a "dead cat bounce" to check the bottom of the new curve. Collapse to the Mean: Since parabolic moves are unstable, prices crash back to their baseline. Support levels from the start of the climb often break quickly.

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