Day’s Theme: A failed attempt to break through key resistance followed by a decline through key support.
Behavior Around the High: A notable decline through multiple support levels.
Behavior Around the Low: A decline to and through support to meet a second support and then have sideways rotation along that price level.
Exclusive Trade Opportunities for Subscribers:
A pop and drop starting between 11:00 and noon offers an opportunity to open a short position. I would either hold that until the close or hold it until the next day when there’s a decline through multiple support levels.
Overview
There’s a prominent move higher in the pre-market followed by a full retracement. We’ll establish key support rotating sideways. That’s followed by a big move higher and a failed attempt to break through key resistance in the first half hour followed by a decline through key support into a day’s low. Out of that low there’s a pop and drop starting between 11:00 and noon. In the midst of that pop there’s an opportunity to open a short position. We’ll have sideways rotation along key resistance midday and fail to break through key resistance between 1:00 and 2:00. There’s then some volatility followed by a notable decline. From there, we’ll break through horizontal resistance to meet a secondary resistance and then fall back to somewhere between those two price levels. That’s followed by a notable move higher where we’ll break above resistance briefly and then break back down through the same price level. We’ll then have sideways rotation into the close with a sharp drop within that sideways rotation.
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