Month’s Theme: A failed attempt to break through key resistance on a multi-day scale followed by a decline through key support.
Behavior Around the High: Most likely location of a high is on the 15th or on the 18th/19th.
Behavior Around the Low: There’s a low on the 7th and the lowest low for the month is from the 27th into the 30th.
Trade Opportunities:
An opportunity to open a long position on the 1st in the midst of a decline. I would close that on the 3rd.
An opportunity to open a short position at a high on the 3rd/4th. You could close that on the 5th.
Overview
On or around the 1st there should be a notable decline increasing with momentum throughout the day. I would open a long position in the midst of that decline. That will precede a significant move to the upside. I would close that long position on the 3rd at a highest high. If there’s no high, I would close it on the 4th. You could open a short position on the 4th and close that short position on the 5th.
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