Theme:
An important resistance level is highlighted
Overview:
We have a decline in the pre-market with a push to the upside. We meet resistance and then we fall sharply around the open. Two things could happen: either whatever move we had in the pre-market is retraced in the first half hour, or a wave forms with a prominent move higher. Either both will happen or just one of the options. There is a push higher between roughly 10am and 11am. I am advised to be prudent here. There is a high here that is the same as the highs from a prior day. We break out from a low and we momentarily come above an important price level that we have been trying to break through the entire week. There is a peak and then a drop and then a peak. Going back to the 10am and 11am hour, we have that move higher and then the end of a trend in the following hour. It is more like a rotation, so it is a temporary pause that causes this rotation midday and then we move higher yet again. There is a trade opportunity there, and I am advised to be opening up a short position. We are going to push really high there and we should retrace some of that between roughly 1pm and 2pm. After that day’s high there will we a push to revisit that same price level and crest. We have some back and forth erratic behavior along a price level between 2pm and 3pm, and there is a trade opportunity at the end of the day. We were expecting to break out in the last hour but instead we fail and break down. There is a sudden dip within a period of volatility around the close and some profit taking near overbought territory in the post-market.
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