Day’s Theme: Sideways rotation ending with a fast, sudden move higher.
Behavior Around the High: A decline off of the high that offers an opportunity to open a long position.
Behavior Around the Low: A sideways S-formation within a channel around the low.
Trade Opportunities:
I’m advised to trade around the halting of a bullish trend marked by a sharp decline through key support.
Overview
On May 8th, there’s a high in the pre-market. From that high, we’ll fall into a prominent trough. Out of that trough, there’s some sideways rotation and a fast, sudden move higher marking the end of that sideways rotation. In the first half hour or so, there’s another peak or crest. I’m advised to be cautious around that time. We’ll then turn around and decline through multiple support levels into a prominent low or prominent trough for the day between roughly 10:00 a.m. and 11:00 a.m. There’s a rally to the upside between roughly 11:00 a.m. and noon where we then establish support at a higher level.
We’ll decline off of a peak or crest again between noon and 1:00 p.m. We’ll rotate sideways after that decline and establish support at a low between roughly 1:00 p.m. and 2:00 p.m. There’s an opportunity to open a long position for a scalp trade around that low. Out of that low, there’s a fast, sudden move higher between 2:00 p.m. and 3:00 p.m. I would close the long position opened earlier around this time. There’s a failed attempt to break through key resistance toward the end of the day. We’ll then decline through key support and have a period of volatility around the close. There’s a sharp drop that will stand out within that period of volatility. In the post-market, there’s some bumping along resistance.
Sneak Preview
On March 9th, we’ll open higher. There’s also a solid foundation of support that can be relied upon.
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