Month’s Theme: There’s a move higher even in the face of seemingly overwhelming headwinds. That’s crossed with a sideways-fluctuating rally that precedes a decline, however.
Behavior Around the High: We’ll revisit a support level that was recently a passed opportunity.
Behavior Around the Low: A notable decline into the low.
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An opportunity to open a long position in the midst of a trough on the 3rd or early on the 4th. I would close that on the 5th after a fast, sudden move higher in the midst of a rally along a diagonal trend line.
Overview
On the 1st, we’ll have an overbought crest that we’ll sell off from through multiple support levels. On the 2nd, there’s a prominent trough that will stand out on a multi-day scale and a lot of price change. On the 3rd, there’s another trough, likely later in the day. I would open a long position in the midst of that trough. I would hold that through the 4th and into the 5th. I would close that on the 5th when we have a rally along a diagonal trend line that ends with a fast, sudden move higher. There’s also a period of sideways rotation where we’ll attempt to establish support along a key support level on a multi-day scale. That takes us into a higher trough on the morning of the 4th. That’s followed by a prominent move higher and more sideways rotation at a higher price level leading into the 5th. We’ll then have a rally early in the day that precedes a notable decline. That will take us into a lowest low on the cusp of the 5th/6th. On the 6th, there’s a sharp drop in the midst of a period of volatility. I’m advised not to chase that decline. On the 7th, there’s both a prominent peak and a prominent trough. There’s a lot of price change.
There’s sideways rotation from the 7th into the 8th around the high. There’s then a sharp drop down to and through support where we’ll have a U-shaped reversal and come back up to reuse that support level around the 8th/9th. On the 9th, there’s an unexpected move higher that will take us to a peak or crest on the 10th. On the 10th, there’s a notable retracement back down into a prominent trough at the end of the day.
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