Day’s theme: An important bottom or trough.
Behavior around the high: A sharp decline out of the high that will stand out on a one-day chart.
Behavior around the low: Three criss-crosses through the same price level with the third cross marking a bullish trend, however it’s nullified, and we don’t actually see a bullish trend.
Trade opportunities:
An opportunity to open up a long position early in the morning.
Also around the open, there’s an opportunity to open up a short position in the midst of a rally.
Overview:
On August 1st, there are two trade opportunities early in the morning. One is to open up a long position, and the other is an opportunity to open up a short position in the midst of a rally. In the first half hour, we decline through multiple support levels, however this is followed by a big rally higher which marks an opportunity to open up a short position around 11:00 a.m. We then meet resistance and then break down with consecutively lower spikes up on the way down. Those spikes will meet moving averages as resistance levels. This is followed by a prominent move on a one-day chart midday to meet a day’s high or a prominent crest. I’m advised to cash out of my long position around this time, likely around 1:00 p.m.
Between 1:00 p.m. and 2:00 p.m., there’s a fast, sudden move higher marking the end of a decline. We’ll see the day’s high between 1:00 p.m. and 3:00 p.m. Off of that high, we have a notable decline. In the midst of that decline into the close, we’ll see some back and forth behavior in the form of a sideways S-formation between horizontal resistance. In the post-market, there’s a move higher.
Sneak preview:
Multiple failed attempts to break through key resistance on August 2nd.
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