Month’s Theme: A period of sideways rotation and the revisiting of a recent past opportunity at a support level, likely in the midst of a sharp dip on a one-month chart. There’s also a decline through multiple support levels into a prominent low or trough.
Behavior Around the High: There’s a notable rally into a critical technical price level.
Behavior Around the Low: A sharp decline due to multiple headwinds will take us into the lowest low.
Trade Opportunities:
An opportunity midday at a peak on the 1st. There’s an opportunity to open up protection around that peak before a reversal. I would close that protection at the end of the day. There’s also an opportunity in the morning to open up a long position in the midst of a decline on the 1st. I would close that long position midday.
An opportunity to open a short position at a resistance level on the 3rd. I would close that short position on the 9th.
An opportunity on the 10th to trade around multiple failed attempts to break through key resistance on a one-day chart.
On the 13th, I would trade around sideways fluctuations with a bullish trend preceding a decline on a one-day chart.
On the 17th, there’s an opportunity for a day trade around a peak or crest toward the end of the day. If we don’t see a lowest low this day, I would hold off on that trade. For a swing trade, I would open up a long position in the midst of meeting that lowest low. You could close that long position in the midst of a notable move higher midday on the 21st. If you have more risk tolerance, you could close that long position on the 24th in the midst of a rally.
An opportunity to open a short position on the 24th and close that position on the 27th when we’re rotating sideways along key support on a one-month chart after a bit of a decline.
Overview
Week One (2/1-2/3)
On February 1st, we’ll have a prominent low and a day trade opportunity. On the 2nd, there’s a prominent low after a notable decline through a key support level on a one-month chart. On the 3rd, there’s a high in the midst of a notable amount of volatility. There should be some significant price changes there that give the opportunity to possibly position oneself in both directions for a multi-month trade. We’ll revisit a recent past opportunity there. I’m advised not to chase the rally into the high. There’s a highest high and a prominent trough on the 3rd.
Week Two (2/6-2/10)
On the 6th, there’s a prominent trough toward the end of the day. There’s a sharp drop that will stand out on a one-month chart in the midst of a period of volatility. On the 7th, there’s a notable move higher out of a decline from the bottom of a range to the top of a range. On the 8th, we’ll have three crisscrosses through the same price level confirming a bullish trend, however that bullish trend doesn’t hold. On the 9th, we’ll have a notable decline that stands out on a one-month chart. We’ll move into the lowest low or a lowest low for the month. We’ll also revisit a past opportunity at a support level that we meet on the 9th. There’s a significant drop and another lowest low on the 10th. There’s an agreement between two leaders that’s highlighted on the 10th that creates the sharp decline.
Week Three (2/13-2/17)
There are multiple failed attempts to break through key resistance and a sharp decline into the low on the 13th. There’s a sideways S-formation within a channel on the 13th. On the 14th, there’s a near overbought crest that we’ll sell off from. We’ll establish support midday on the 15th. Off of that support level, we’ll move notably higher and create a new support level. On the 16th, we’ll bump up against resistance, break through resistance, and bump up against resistance again. We’ll also have a prominent crest at the beginning of the day on the 16th. On the 17th, we’ll have a period of sideways rotation that ends with a fast, sudden move higher marking the end of that period of sideways rotation. I’m advised to open up protection in the midst of that move to the upside. We may see the lowest low for the month on the 17th.
Week Four (2/21-2/24)
The market is closed on the 20th. On the 21st, there’s a notable move to the upside that pushes the upper end of a range higher. We’ll have a high midday. On the 22nd, we’ll establish new support and push notably higher, however we’ll then decline off of a crest or peak. On the 23rd, we’re bound by a range. We’ll revisit a past opportunity at a support level. We’ll then rally into a highest high on the 24th. That rally will offer an opportunity to open up a short position.
Week Five (2/27-2/28)
On the 27th, there’s some sideways rotation along key support into another prominent crest or peak midday. That’s followed by a notable decline off of that crest or peak. Overnight on the 27th and into the 28th, there’s a notable move to the downside and a big move higher out of oversold territory.
Sneak Preview
In March, we’ll establish a solid support level. A male ruler of nations is highlighted on a one-month scale.
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