Day’s Theme: The establishment of support.
Behavior Around the High: Fluidity along support with equal amounts of bulls and bears trading.
Behavior Around the Low: There should be a sharp drop overnight to meet the low first thing in the morning.
Trade Opportunities:
I’m advised to trade around multiple failed attempts to break through key resistance.
An opportunity to open a long position for a day/scalp trade before we rally into a crest or peak after 10:00 a.m. I would close that long position very shortly thereafter at the top of that crest or peak.
Immediately after closing that long position at the top of a crest, there’s an opportunity to open a short position. I would close that short position after we decline to and through support.
Overview
On May 5th, we’ll have sideways rotation along key support in the pre-market. We’ll sell off from an overbought crest with a notable drop right around the open. That decline increases with momentum moving forward into roughly 10:00 a.m. That’s followed by some sideways rotation and a bit of a rally to reach a crest or a peak. There’s an opportunity to open a long position before we rally into that crest or peak. I would close that long position at the top of the crest. At that top, there’s another trade opportunity to open a short position in the midst of that crest or peak. I would close that short position very shortly thereafter when we decline to and through support to meet a second support level. We’ll then rotate sideways along that support.
Off of that support, there’s another move to the upside where we might push the upper end of a range higher. There’s some sideways fluidity and price swinging around this time. In the midst of that sideways fluidity, there’s a sharp drop somewhere in the last hour. There’s a significant move to the upside into a day’s high around the close where we reach a near overbought peak or crest.
Sneak Preview
On May 8th, we’ll open lower.
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