Theme:
Sharp decline through multiple support levels.
Trade Opportunity:
Around the main lows of the day.
Overview:
There is a low in the pre-market and we drop to a support level. We bounced sideways along it and then there is a move higher right around the open. There is a decline and then we move higher. There is a rally that forms as we move forward in time and it picks up speed. There is a sudden, fast move higher in the first half hour in the midst of a bit of a decline. From roughly 10am to 11am we go from support all the way to resistance. The Strength card implies that we came out of a decline and move higher. In the following hour we fall from a peak or crest. From noon to 1pm we break down through support and meet a second level to bounce along. Then we break down through multiple to reach a low. There is a day’s low toward the end of the day. A move higher starts around 1pm and we break through resistance to meet a second resistance. It pulls back between those price levels and there is a decline that commences. We have a low visited around 2pm, give or take 40 minutes. We have a push higher out of a low in the last half hour. It is a sudden, fast, move to the upside and an intentional fake out.
Around the high there is a notable move to the upside and that is followed by a notable move right back where it started.
Sneak Preview:
A bunch of volatility and an opportunity to play both sides of the market with some puts and calls.
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