Month’s Theme: An agreement between two leaders, possibly a merger or acquisition of some kind. There should be a holding pattern with a pop and then a drop. We’ll also have some bumping up against resistance.
Behavior Around the High: The halting of a bullish trend marked by a decline through key support.
Behavior Around the Low: Around the low, we’ll have sideways rotation along key support on the scale of at least a one-month chart.
Overview
Week One (2/1-2/3)
On February 1st, we’ll see what’s most likely the highest high. We’ll have a move higher through resistance, stay above it briefly, and then we’ll break back down through the same price level. On the 2nd, there’s a decline through multiple support levels. It looks like there’s a resistance level at the end of the day that we poke through momentarily. There’s a prominent trough in the midst of a U-shaped dip on the 3rd. That dip takes place at the intersection of two perpendicular diagonal trend lines.
Week Two (2/6-2/10)
On the 6th, we’ll have the lowest low for the month and a notable fake out or some sort of false triggering an indicator of that will stand out. There’s also a crest at the end of the day. On the 7th, we’ll have a fast, sudden move higher. On the 8th, there’s a notable move higher, even in the face of seemingly overwhelming headwinds. On the 9th, we’ll move to the downside through multiple support levels on the scale of a one-month chart. There’s an important resistance level that we come up against at a trough at the end of the day. On the 10th, there’s a move out of that decline from the bottom of a range to the top of a range.
Week Three (2/13-2/17)
There’s quite a bit of movement over the weekend. On the 13th, there’s a key resistance level highlighted. On the 14th, there’s a prominent move higher followed by a full retracement back down. We’ll come back to revisit the lowest low of the month at a support level that we rotate sideways along on the 15th. There’s a sharp dip within that period of sideways rotation. On the 16th, there’s a breakout on the scale of a one-month chart. On the 17th, we’ll establish support and have a notable move to the upside. I’m advised not to chase that rally on the 17th due to the cessation of a trend over the weekend.
Week Four (2/20-2/24)
No mention of the 20th. There’s a notable decline to a key support level that will stand out on a one-month chart on the 21st. On the 22nd, there’s a period of volatility that ends with a fast, sudden move higher. On the 23rd, there’s a decline that offers an opportunity to open up a long position. On the 24th, there’s a prominent peak or crest midday that we notably decline from.
Week Five (2/27-2/28)
On the 27th, there’s a stable foundation that’s established toward the end of the day. On the 28th, we may open higher than we closed the previous day, however there is a decline.
Sneak Preview
In March, we’ll start the month with a notable move to the upside and establish support along a key support level on a one-month chart. There’s a notable move higher off of that support that stands out on a one-month chart. We’ll establish a higher level of support after that move to the upside. There may be a notable decline toward the end of the month.
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