What is a Wyckoff Undercut and Rally?
A Wyckoff Undercut and Rally occurs when an up-trending stock breaks below its moving average and/or the prior low but closes above the moving average and/or prior low. The price will undercut the moving average/prior low, faking out sellers and short-sellers, before rallying back above it. At this point, you can place your stop loss slightly below the new low.
Yesterday, we saw this in Gilead Sciences (GILD)