Day’s Theme: A significant reversal.
Behavior Around the High: Flat behavior at a key technical resistance level.
Behavior Around the Low: A cash-out opportunity and a lot of price change into the lowest low.
Exclusive Trade Opportunities for Subscribers:
An opportunity to open a long position at a low around the open. I would close that after a move to the upside between 11:00 and 12:30.
An opportunity to open a short position in the midst of a rally between 11:00 and 12:30.
Overview
In the pre-market we’ll have a notable decline. That’s followed by a prominent move higher and then a full retracement back down into a low around the open. There’s an opportunity to open a long position at that low before a big move higher into a high. In the first half hour, there may be another opportunity to open a long position. I would close the long position after an unexpected move to the upside into a peak between 11:00 and 12:30. We’ll sell off from it pretty notably into a low for the day between noon and 2:00. In the midst of that low there’s another rally that offers an opportunity to open a short position.
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