*Accuracy rating update: 100% or 15/15 predictions correct*
Day’s theme: An attempt to reestablish support.
Behavior around the high: A failed attempt to break through a resistance level that we expect to break through. We then turn around and decline through key support on a one-day chart.
Behavior around the low: A fast, sudden rally out of the low.
Trade opportunities:
There’s an opportunity to open up a long position when we meet a low midday.
Overview:
On November 16th, there are some bullish price swings in the pre-market and into the open. Around the open, we have a move to and through a resistance level, we stay about it briefly, and then there’s a full retracement back down through that same price level. We then have a failed attempt to break through key resistance where we then turn around and decline. It looks like there’s an opportunity here to roll a position or to open a position at a support level.
We’ll see both a low and a high midday. In the midst of a decline midday, there’s an opportunity when we meet a low to open up a long position. We’ll then see a big move to the upside out of that midday low to reach for a distant resistance. This will likely happen between 1:00 p.m. and 2:00 p.m. There’s a trade opportunity at that resistance level. We then decline from resistance. There are possibly some headwinds in the last hour. We’ll see some volatility as we move into the close and a sharp drop from that period of volatility. This is followed by a bit of a push to the upside that would stand out on a one-day chart right around the close, however that rally fails. We then break down through a diagonal trend line and increase in volatility as we move forward in time. We should see another low just after the close or overnight, but most likely in the post market.
Sneak preview:
On the 17th, we’ll revisit a support level that we recently visited. We’ll also likely open lower.
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