If you look at this tri-angle for IWM, you can see that the lower line is right at the gap that was formed on 11/24 (gap here means IWM gap higher on 11/24).
Why is this important?
When a gap is formed, it basically means one thing, anyone who enters into IWM position on or after 11/24 is paying a price that is HIGHER than the lower end of that gap, which is 239 (you will not be able to buy below this price due to the gap). Now, put yourself in their shoes, you would probably be a little worried as IWM consolidate and price moves lower after 11/24.
This is what we called "selling pressure" in TA, meaning, there is a high likelyhood of more people thinking of selling due to this gap. However, if the stock price bounce off this low (which is the lower end of this tri-angle), it basically says that instituions are willing to step in and accumulate those shares that are sold at this level.
If there are enough buyers, they will eventually exhaust the "selling pressure" coming from people who bought at the gap. When this happens, more and more buyers come in, and stock eventually breaks up and goes higher
On the other hand, if stock drops below the lower end, it basically signals that instituions buyers no longer want to support stock at this level (maybe due to some other news that we dont know yet, but whatever the case, their action is telling us something else is going on and stock likely go lower)
