*Accuracy rating update: 100% or 16/16 predictions correct*
Day’s theme: A critical resistance level on more than just a one-day chart is highlighted. There’s also an opportunity to position oneself in both directions.
Behavior around the high: There’s a decline off of the high that offers an opportunity to open up a long position, however this decline is nullified.
Behavior around the low: Off of the low, it looks like we have the beginning of a rally where we push higher off of the low.
Trade opportunities:
Advised to trade around the halting of a bullish trend marked by a sharp decline through a critical support level on a one-day chart.
In the first half hour, there’s a trade opportunity at a failed attempt to break through key resistance.
Overview:
On November 9th, in the pre-market we have a decline through multiple support levels to reach a low somewhere around the open. Out of that low, there’s a big move to the upside that will stand out on a one-day chart. This rally to the upside offers an opportunity to position oneself for a decline. In the first half hour, there’s a trade opportunity at a failed attempt to break through key resistance. That’s followed by a decline through key support. There’s a U-shaped dip into a trough between roughly 10:00 a.m. and 11:00 a.m. Between 11:00 a.m. and noon, we move to the upside and may momentarily break through the previous key resistance level, however this is a fake out. There’s three pokes through the same price level somewhere between 11:00 a.m. and 1:00 p.m., and after the third poke there’s a sharp decline to reach another low for the day between roughly 1:00 p.m. and 2:00 p.m.
Out of that low, there’s a breakout where we come to revisit resistance levels. We’ll have multiple failed attempts to break through key resistance. There’s another low at the end of the day, however we should also see a rally to the upside at the end of the day that increases with momentum and creates a new support level. We’ll rotate sideways along that new support and have a cash-out opportunity. In the post-market, there’s a fast, sudden move higher ending that period of sideways rotation along support.
Sneak preview:
We should open lower on the 10th.
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