Day’s Theme: An important price level is highlighted on a multi-day scale.
Behavior Around the High: There’s a notable move both into and out of the highest high.
Behavior Around the Low: Out of the low, there’s a fast, sudden move to the upside.
Trade Opportunities:
I’m advised to trade around a key moment before a notable decline.
An opportunity to open a long position in the midst of a decline around 11:30 a.m.
An opportunity to open a short position when we poke through resistance midday.
Overview
On February 16th, there’s a notable drop in the pre-market and around the open. Around the open, there’s a crest that we fall from after failing to break through key resistance. We’ll then decline through key support. Between roughly 10:00 a.m. and 11:00 a.m., we’ll have a period of volatility that ends with a fast, sudden move higher. We’ll decline again between 11:00 a.m. and noon. I’m advised to open up a long position in the midst of that decline around 11:30 a.m. I would close that position around a fast, sudden move higher that begins around noon. That move to the upside will take us through key resistance on a one-day chart. We’ll stay above resistance briefly and then break back down through the same price level shortly thereafter.
We’ll then move higher where we poke through resistance, stay above it briefly, and then break back down. There’s an opportunity to open a short position around this time. We’ll be range-bound between roughly 1:00 p.m. and 2:00 p.m. and we’ll revisit a support level that was recently a past opportunity. There’s another notable move higher out of that low and we’ll successfully turn that price level into new support. We may push the upper end of a range higher toward the end of the day. We’ll then have multiple failed attempts to break through resistance followed by a reversal around the close or in the post-market.
Sneak Preview
On the 17th, the lowest low may be at the open or the end of the day. The high for the day is likely to be at the beginning of the day.
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