Day’s Theme: A rally that offers an opportunity to open a short position.
Behavior Around the High: A prominent peak that we’ll sell off from.
Behavior Around the Low: An important price level on a multi-day scale. We may see some flattening out of volatility.
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I’m advised to trade around a period of sideways rotation.
An opportunity to open a short position at a crest around 10:00. I would close out of that in the midst of a low between 11:00 and noon.
An opportunity to open a long position after closing out of the short position between 11:00 and noon.
Overview
On the 31st, we’ll have a prominent move higher followed by a full retracement of that move in the pre-market. We’ll have a decline that increases with momentum moving forward in time. We’ll likely have a prominent move higher into the open. There’s then a full retracement of that move to the downside into a prominent trough. There’s a fast, sudden move higher into a crest around 10:00 that offers an opportunity to open a short position. We’ll then have a low between 11:00 and noon. I would then close out of the previously opened short position and open a long position.
There’s a rally midday into a failed attempt to break through key resistance between roughly 1:00 and 2:00 followed by a decline through key support. We’ll have a big move to the upside between 2:00 and 3:00 that pushes the upper end of a range higher. That move higher offers an opportunity to close the long position. We’ll then sell off from that high through multiple support levels into a low for the day with some sideways rotation into the post-market.
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