*Accuracy rating update: 100% or 17/17 predictions correct*
Day’s theme: A strong move to the upside, possibly pushing the upper end of a range.
Behavior around the high: There will be a strong move to the upside on a one-day chart to reach the high.
Behavior around the low: Moving sideways along resistance.
Trade opportunities:
Two cash-out opportunities near a crest and a trough midday.
There’s an opportunity to open up a long position midday for a swing trade.
Overview:
On August 5th, right at the open there’s a big push higher, however we then break down through a diagonal trend line that we were rallying across. In the first half hour, there are sideways price swings with a slight bullish trend. We break out through a resistance level, stay there briefly, and then break back down to the original price level. Between roughly 10:00 a.m. and 11:00 a.m., we move into a decline to and through support, and then we come back and reuse that support. We’ll see some erratic behavior between 11:00 a.m. and noon, and in the midst of that erratic behavior, there’s a big push to the upside and into a day’s crest. There’s a cash-out opportunity near this crest and a cash-out opportunity near a trough as well. There is also an opportunity to open up a long position for a swing trade midday.
Between roughly noon and 1:00 p.m., there’s a big drop, especially toward the end of the hour. We then meet support and move sideways along support between roughly 1:00 p.m. and 2:00 p.m. This is followed by a move higher to meet the closest resistance, and then we come back down to meet support again. Between roughly 2:00 p.m. and 3:00 p.m., we have some sideways fluidity along support. In the last hour, there’s a rally that starts to pick up steam and increases with momentum as we move into the close. There’s a day’s high as well as a break back down around the close. We continue declining into the post-market.
Sneak preview:
There’s a breakout that’s highlighted on August 8th. We’ll also see a higher high and a lower low.
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