Theme:
A flight to safety.
Trade Opportunity:
Around a sudden fast move higher.
Overview:
In the pre-market there is an important support level that was a past opportunity. We revisit that past opportunity and there is a U-shaped dip. Something that was hidden comes to light around the open. There are three pokes through a resistance level and after the third poke there’s a sharp decline in the first half hour. Between 10am and 11am, there is a courageous rally out of a decline. We attempt to establish support between 11am and noon. Between 12pm and 1pm, there is a move high followed by an equal move back down. There’s an opportunity within a decline to open some long positions or buy some calls. The decline continues into the 2pm to 3pm hour, and it picks up steam into the last hour of trading. There is sideways fluidity after a sharp decline around the close. In the post-market we have further decline. We will probably see a low here at the end of the day.
There will be lower lows and lower highs, but there are spikes to reach resistance. They come up to meet moving averages. Around the high there is going to be a sudden, fast move higher in a period of decline. Around the low there will be a lot of volatility and we will meet resistance. This will be followed by a sharp decline that continues in volatility as we move lower.
Sneak Preview:
A big push higher in the midst of a decline.
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