Day’s Theme: A decline that offers an opportunity to open a long position.
Behavior Around the High: Erratic behavior back and forth through the same price level. In the midst of that erratic behavior we’ll revisit a crest that was recently a past opportunity.
Behavior Around the Low: We’ll decline to a support level and then reestablish support at that support level.
Trade Opportunities:
I’m advised to trade around the end of a decline that’s marked by a fast, sudden move higher.
An opportunity to open a short position in the first 10 minutes of trading.
An opportunity to open a short position midday when we successfully turn resistance into a new support level.
I'm advised to open protection around the close.
Overview
On February 28th, we’ll likely open higher in the pre-market with a bit of a rally. That rally then halts with a sharp decline through a notable support level on a one-day scale. Around the open, we’ll decline through a support level that we recently declined through once before. We’ll meet a new support level in the first half hour and increase with bullish momentum as we move forward in time. There’s a temporary breakout out of that decline in the first ten minutes that offers an opportunity to open a short position. We’ll have some sideways rotation that gradually increases with bullish momentum. There are some sideways fluctuations between 10:00 a.m. and 11:00 a.m. that precede a decline. A decline commences around 11:00 a.m. that takes us back to a key support level on the scale of a one-day chart.
We’ll have some sideways rotation moving into midday. That sideways rotation ends with a fast, sudden move higher and we’ll meet a crest midday. We’ll successfully turn resistance into new support momentarily which offers an opportunity to open up a short position. We’ll then decline into 2:00 p.m. That’s followed by a fast, sudden move higher out of near oversold territory on a one-day chart. We’ll then decline through multiple support levels between 2:00 p.m. and 3:00 p.m. There’s a bit of a crest around 3:00 p.m. and I'm advised that there’s a notable drop soon after. The day’s low is right around the close at a strong support level. I’m advised to open up protection around the close.
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