*Accuracy review update: 93% or 13/14 predictions correct*
Day’s theme: A decline due to multiple headwinds.
Behavior around the high: Not specified.
Behavior around the low: Not specified.
Trade opportunities:
An opportunity around a support level that increases with momentum and bullish sentiment as we move forward in time.
An opportunity to position oneself for both directions near the close.
Overview:
On August 11th, we have a fast, sudden move higher that marks the end of sideways rotation in the pre-market. We’ll see a first low for the day right around the open. There’s also a critical technical level that’s highlighted around the open. Be cautious of a fakeout in the first half hour. Between roughly 10:00 a.m. and 11:00 a.m., there’s a spike of bullish behavior. We’ll also have some sideways rotation along support, followed by a rise to meet the closest resistance and a break back down to support. We have another day’s low here, and a trade opportunity at that low. Between roughly 11:00 p.m. and noon, there’s a big move to the upside out of the previous low.
We’ll see a breakout midday, followed by a failed attempt to break through key resistance and a decline into another low for the day between roughly 1:00 p.m. and 2:00 p.m. Between roughly 2:00 p.m. and 3:00 p.m., there’s a fast, sudden move to the upside, followed by a full retracement back down. My sense is that we end higher than the day’s low. Right around the close, there’s an important resistance level highlighted and a trade opportunity to position oneself in both directions.
Sneak preview:
Bullish price swings on the 12th.
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