Day’s Theme: A period of sideways rotation that ends with a fast, sudden move higher.
Behavior Around the High: Out of a decline off of the high, there’s an opportunity to open a long position.
Behavior Around the Low: Around the low, there’s a support level that can be trusted that’s established.
Trade Opportunities:
I’m advised to trade around either the senate being highlighted or around something to do with a pop and drop.
Overview
On May 4th, we’ll have a decline through multiple support levels in the pre-market. Around the open, there’s a bit of a move to the upside with a failed attempt to break through key resistance. That’s followed by a decline through key support. In the first half hour, we’ll establish support and then have a move higher where we’ll establish a higher level of support. It looks like we’ll have a high at a crest around 11:00 a.m. and then we’ll sell off from that crest. I’m advised to be cautious here. We’ll sell off from the crest to and through support. We’ll then move back up and reuse that support level as support. That’s followed by a rally along a diagonal trend line that breaks through horizontal resistance to meet a secondary resistance level around noon. That rally is halted by a decline through key support on a one-day scale.
We’ll come into key support again around roughly 1:00 p.m. to 2:00 p.m. We’ll rotate sideways along that support for a bit and then there’s another fast, sudden move higher that will stand out on a one-day chart. We’ll break through resistance and stay above it briefly around the 2:00 p.m. or 3:00 p.m. mark. We’ll then break back down through the same price level shortly thereafter. That’s followed by a reestablishment of support to the downside. In the last hour, we’ll have a move to the upside where we’ll establish support at a higher level. We may have another high around the close. That rally won’t last in the post-market, however.
Sneak Preview
On the 5th, we’ll open lower and have bearish price swings to look out for.
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