*Accuracy rating update: 100% or 10/10 predictions correct*
Day’s theme: A nullified breakout in the form of a failed attempt to break through key resistance followed by a decline through a key support level.
Behavior around the high: N/A
Behavior around the low: Failed attempts to break through key resistance.
Trade opportunities:
There’s a cash-out opportunity around the open.
Overview:
On August 22nd, there are multiple headwinds pushing us lower in the pre-market. There’s a cash-out opportunity and a decline into a day’s low right around the open. There’s an agreement between two leaders or a merger of some kind highlighted around this time. We then have a breakout out of the low between roughly 10:00 a.m. and 11:00 a.m. This breakout is then followed by a notable decline around noon due to selling from overbought territory on the RSI.
There’s then a move higher through resistance, followed by a decline shortly thereafter back through that same price level. One of two things could happen around this time: we either rally back and forth through the same resistance level between noon and 2:00 p.m., or we rally into a high between 1:00 p.m. and 2:00 p.m. There’s a halting of that rally between 2:00 p.m. and 3:00 p.m. marked by a decline through an important support level. We’ll then see sideways fluctuations with a bearish trend that precede a rally in the last hour. There’s an important resistance level highlighted right around the close.
Sneak preview:
There’s the commencement of a rally on the 23rd.
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