*Accuracy rating update: 100% or 7/7 predictions correct*
Day’s Theme: An important resistance level is highlighted, however it’s nullified and somehow made irrelevant.
Behavior Around the High: Nullified sideways rotation along support. There’s also a trade opportunity around the high.
Behavior Around the Low: A failed attempt to break through key resistance followed by a decline into the low.
Trade Opportunities:
An opportunity to open up a long position for a quick day trade around the open.
Overview
On January 25th, we’ll open up higher in the pre-market and then decline with increased momentum as we move forward into the open. There’s a trade opportunity to open up a long position for a quick day trade around the open. After that decline into the open, there’s a rally out of the day’s low to meet an important resistance level on a one-day chart between 11:00 a.m. and 1:00 p.m. I would sell any long positions opened earlier at this resistance level. We’ll then decline from that resistance level with consecutively lower spikes up on the way down. There’s a trough somewhere between 11:00 a.m. and noon. The senate is highlighted along with some sort of holding pattern around this time.
Midday, we’ll rally along a diagonal trend line, break through horizontal resistance, and then pull back to somewhere between those two price levels. We’ll then decline into the end of the day.
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