Theme:
The revisiting of a past opportunity at a crest within the midst of some erratic behavior. This behavior will be back and forth through the same price level.
Overview:
In the pre-market, we have a big move to the upside, which is an almost irrational move to meet distant resistance. It looks like we go from a low to a high or a high to a low. Both could transpire, but they will be here in the first few minutes. In the first half hour, we have a move higher along a diagonal trend line, breaking through horizontal resistance to meet a secondary resistance. Then we pull back to somewhere between those two right around the open. We have a steep decline out of the open, marking a bullish trade opportunity off a trough around 10 am. There is a notable move higher through horizontal resistance and we stay above it briefly before breaking back down through that same price level.
Then we continue higher and there is a trade opportunity a bit before noon. If I open a long position there is an opportunity to sell for a day trade because we have the revisiting of a crest and opportunity where we should cash in. Then we fall from that price level and crest down to another support and we bounce along that support for a bit and break down through multiple support levels. There is a high correlator here, and then we go down to another low for the day. This is likely an important support level. We have a drop from a crest and some erratic behavior. We have a move higher off of support between 1 pm and 2 pm and then in the following hour, we revisit a crest and have some erratic behavior. There is a notable trough there as we move into the end of the day. We see another low correlator and an opportunity to position ourselves on both sides of the market. There is a selling from a crest down to meet a low again around the close, with three pokes through horizontal resistance, followed by a decline off of that third poke in the post-market.
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