Month’s Theme: Notably bearish with a decline that increases with momentum throughout the month. We’ll bounce along support before breaking down through more support levels.
Behavior Around the High: Sideways rotation establishing support and then a prominent move higher into the high.
Behavior Around the Low: Sideways rotation along key support on a one-year scale.
Exclusive Trade Opportunities for Subscribers:
An opportunity to open a short position for an overnight swing trade on the 1st.
An opportunity to open a long position in the midst of sideways rotation along key support on the 3rd. I would close that after a move higher on the 4th.
An opportunity to open a short position on the 4th for a multi-day swing trade. I would close that on the 6th.
Overview
On the 1st, there’s a rally along a diagonal trend line that ends with a fast, sudden move higher and then a breakdown through that diagonal trend line with increasing volatility on the way down. The fast, sudden move higher offers an opportunity to open a short position for an overnight swing trade. On the 2nd, there’s an important resistance level on a multi-day scale that’s highlighted. We’ll also have two crests or two peaks that form. In the late morning there should be a trough that forms and a significant move to the upside out of it. That move to the upside offers an opportunity to close the short position. On the 3rd/4th we’ll likely have the month’s high and a key resistance level. There are as many as four local lows on the 3rd. There’s an opportunity to open a long position in the midst of sideways rotation along key support. On the 4th, there’s an opportunity to close the long position after a move higher. There’s also an opportunity to open a short position on the 4th for a multi-day swing trade. On the 5th, there’s a rally into key resistance followed by a decline with consecutively lower spikes up on the way down. On the 6th, there’s a decline off of a minor peak to and through support to meet a second support and then we’ll rotate sideways. There’s someone speaking in the afternoon. There’s a lowest low thus far somewhere between the 6th and 7th. If there’s a decline into a low on the 7th you could open a long position for a day trade. There’s a rally from the 7th into the 8th.
There’s a decline off of a peak or crest on the 8th through multiple support levels. We’ll decline into the 9th where we’ll have price swings and another sharp drop around the cusp of the 9th/10th into another lowest low.
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