*Accuracy rating update: 100% or 13/13 predictions correct*
Theme:
A decline through a support level to meet a secondary support level. We bounce sideways along that support level for a bit and then break down through multiple support levels. To be clear, these support levels are on a one-day chart. I’m referring to a one-day chart unless otherwise specified. Around the high, we have a notable decline off of a crest or peak. This decline stands out on a one-day chart. Around the low, we have bullish price swings and a cash out opportunity if we’re smart about our puts. There’s also a big price move midday.
Overview:
On October 13, 2022, there’s some erratic behavior back and forth through the same price level in the pre-market. Between the pre-market and the first hour and a half, we revisit a crest that was recently a past opportunity. We also establish support somewhere in the first hour and a half. This is followed by a move higher through horizontal resistance to meet a secondary resistance level, and then we pull back to somewhere between those two levels. We should see a high and a low within close proximity to each other around this time. Between 11:00 a.m. and noon, we have more volatility and an important resistance level highlighted. There’s a fast, sudden move to the upside ending sideways rotation somewhere between 12:30 p.m. and 2:00 p.m. We have the end of a rally and a move down from a prominent high between roughly 2:00 p.m. and 3:00 p.m. The end of that rally is marked by three pokes through the same price level and a decline off of that third poke somewhere in the last hour of trading.
We’ll see another prominent crest or high around the close and then a decline off of that crest. Right around the close or in the post-market, there’s a price level that marks a trading opportunity to position oneself for both directions. We’ll see a notably higher price and a notably lower price compared to the current price in the near future, so it’s a good price point to position trades in both directions.
Sneak preview:
A decline that marks an opportunity to open up a long position.
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