Theme:
An M-formation through a price level.
Overview:
We have an important price level in the pre-market, and there is a fast, sudden move higher signaling the end of a decline right around the open. In the first half hour of trading there is a sharp dip within a period of volatility and it looks like we have a bit of rallying between 10am and 10:30am. Then we fall from the crest down to support but come back up above it. There is a notable decline between roughly 11am and 12pm, with an important piece of news coming out at the end of that hour. A rally starts and we visit an important support level somewhere between 12pm and 2pm. We go higher and there is a sudden, fast move in the midst of bullish rotation. We go up higher through resistance and everyone is expecting us to keep going. We break down through the same price level and make an A-shape. That takes place between roughly 2pm and 3pm, and then we fall back down through a price level before pushing higher. There is a failed attempt to break resistance and a decline through support in the post-market.
Sneak Preview:
A big push to the upside from a good piece of news.
Comments