Updated: Mar 13
Day’s Theme: A sharp dip that will stand out in the midst of sideways rotation along key support.
Behavior Around the High: A significant move to the upside out of oversold territory or to fill a previous gap down.
Behavior Around the Low: A notable move to the downside standing out on a one-day chart that offers a significant trade opportunity. There’s also fast, sudden move higher out of the low.
An opportunity to open a short position around a rally to the upside.
An opportunity to open a long position after breaking down between 10:00 a.m. and 11:00 a.m. I would close that position in the midst of a breakout between 1:00 p.m. and 2:00 p.m.
On April 18th, there’s a U-shaped dip that forms near the intersection of two perpendicular trend lines. There’s a rally along a diagonal trend line around the open breaking through horizontal resistance, meeting a secondary resistance level, and then forming a crest. We’ll have selling in the first half hour down to and through a support level. We’ll do a U-shaped reversal below that support level and then move back up to reuse it as support. Between roughly 10:00 a.m. and 11:00 a.m. we’ll break down through a support level that we recently broke down through once before. There’s an opportunity to open a long position after we break down. There’s a lot of bearish volume around the 11:00 a.m. hour. There’s a significant low for the day around this time.
There’s a fast, sudden and unexpected move higher out of that low. We’ll have erratic behavior through the same price level around midday. In the midst of that erratic behavior, there’s a crest that we revisit that offers another opportunity. Between roughly 1:00 p.m. and 2:00 p.m., we’ll have a breakout on a one-day scale. I would close the long position opened earlier in the midst of that breakout. That breakout won’t hold, however. We’ll have some back and forth behavior toward the mid to end of the day. We’ll decline from resistance down to support, reverse, move back up to resistance, and then decline again back down to support. In the last hour, there’s a significant move to the upside, possibly even pushing the upper end of a range higher. We’ll have some failed attempts to break through key resistance. In the post market, there’s the halting of a bullish trend marked by a sharp decline through key support.
On the 19th, there’s a fast, sudden move higher in the pre-market.