Updated: Mar 13
Day’s Theme: A rally along a diagonal trend line that ends with a fast, sudden move higher and then a breakdown through that diagonal trend line with increasing volatility on the way down.
Behavior Around the High: We’ll have two peaks and a U-shaped dip that forms near the high within close proximity to two intersecting perpendicular diagonal trend lines.
Behavior Around the Low: A prominent decline or trough that will stand out, likely on more than just a one-day chart.
I’m advised to trade around a failed attempt to break through key resistance followed by a decline through key support.
On April 20th, there’s a move to the upside and possibly a breakout in the pre-market. We’ll rally along a diagonal trend line around the open, break through horizontal resistance, and then meet a secondary resistance, likely in the first half hour. There’s an opportunity around the open to open a long position in the midst of a move to the upside. That rally’s halted by a significant decline through key support in the late morning session. There’s a trade opportunity to open a short position around 11:00 a.m., or you could wait for the drop and open a long position to close a bit later in the day when we’re rallying back to the upside.
We’ll meet a prominent resistance level around 1:00 p.m. or 2:00 p.m. and then break down with consecutively lower spikes up on the way down. We’ll move into a support level at the end of the day that we’ll then rotate sideways along. We may see a quick pop to a resistance level followed by a sharp drop through multiple support levels at the end of the day or in the post-market.
On April 21st, it looks like we’ll open higher, although not by much. We’ll have three crisscrosses through the same price level, likely in the pre-market.