*Accuracy rating update: 100% or 12/12 predictions correct*
Day’s theme: We’ll revisit past problems in a decline through a key support level, however this decline is nullified, meaning it’s made irrelevant by other behavior throughout the day.
Behavior around the high: We’ll have a rally into a diagonal trend line and break through horizontal resistance before meeting a secondary resistance. We then pull back to somewhere between those two price levels to form the high for the day.
Behavior around the low: We’ll see a nullified low, likely in the form of a sharp drop followed by a turnaround.
Trade opportunities:
An opportunity to open up a long position around the open.
Another opportunity to trade in the midst of a low, likely around midday.
Overview:
On October 21, 2022, we’ll be in the midst of a decline in the pre-market. Right around the open, we have an opportunity to open up a long position. We’ll see a big move to the upside pushing the upper end of a range. I’m looking for a failed attempt to break through key resistance on a one-day chart to cash out of that long position, likely around 9:40 a.m. Around 9:45 a.m., we’ll have a low or trough. Roughly between 10:00 a.m. and 11:00 a.m., we’ll see three pokes through a resistance level followed by a sharp decline after that third poke. Between 11:00 a.m. and noon, we continue declining, likely into a low. This is followed by a big move to the upside that reaches for distant resistance, so I’m looking to trade in the midst of that low, likely around midday. That move to the upside is followed by a decline back down to a support level. We then rotate alongside that support level for a bit.
Toward the end of the day, likely around 2:00 p.m. or 3:00 p.m., we have a decline from overbought territory on the RSI off of a crest or a high. We’ll see a high at the end of the day and a decline during after hours or overnight.
Sneak preview:
It looks like we’ll be opening lower on the 22nd.
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