*Accuracy rating update: 100% or 11/11 predictions correct*
Day’s theme: A notable completion of a rally marked by a sharp decline through a critical support level. I’m advised to be cautious of a lot of price movement throughout the day or at the end of the day.
Behavior around the high: Out of the high, we have sideways fluctuations with a bearish trend that precede a rally.
Behavior around the low: Moving into the low, we’ll have selling from overbought territory on the RSI.
Trade opportunities:
A trade opportunity in the first hour, although I advise being cautious trading here.
Overview:
On October 25, 2022, we have a notable and unexpected move to the upside in the pre-market. Around the open, we have a move higher through a resistance level, followed by a decline back down through that same price level shortly thereafter. Although there is a trade opportunity around that price movement, I’m advised to avoid risk and be cautious in the first half hour. Around 10:00 a.m., there’s a rally that commences off of a trough, however that rally doesn’t last very long. Around noon, we’ll see a fast sudden move to the upside, followed by a break down through a diagonal trend line that we’re rallying along with increasing volatility on the way down.
Around 1:00 p.m. to 2:00 p.m., we have a fast, sudden move to the upside during a period of volatility that marks the day’s high. Since this is during a period of volatility, there should be a bit of a retracement. Around 2:00 p.m. to 3:00 p.m., we have a move to the upside that will stand out on a one-day chart. The rally continues into the last hour of trading. We then break down toward the end of the day or in the post-market.
Sneak preview:
A gap down on the 26th.
Commentaires