Day’s Theme: A mixed day with a significant trade opportunity on a one-month chart.
Behavior Around the High: A sharp drop that stands out in a period of volatility, however this behavior is somehow nullified.
Behavior Around the Low: The low is also nullified.
Exclusive Trade Opportunities for Subscribers:
I’m advised to trade around an important bottom on a multi-day scale.
An opportunity to open a partial long position in the morning and the other part in the afternoon at a low. You could close that for a day trade after a big move higher around the close.
Overview
In the pre-market, there’s a lot of choppy behavior and likely a high. There’s a peak that we’ll sell off from in the pre-market into the open. I would open a partial long position after that sell-off. We’ll then rally in the first half hour into key resistance and break down from that with consecutively lower spikes up on the way down. There may be a little bit of a rally around 11:00. There’s a move to the upside and a full retracement of that move back down. There’s a notable decline that starts between 12:00 and 1:00 followed by an unexpected move to the upside.
We’ll sell off with a significant decline from a near overbought peak or crest through multiple support levels before 1:00. We’ll hit an important support level on a multi-day scale between 2:00 and 3:00. You could add to the partial long position there if it’s a low. There’s then sideways rotation leading into a big move higher at the end of the day or right around the close. You could close the long positions for a day trade after that move to the upside.
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