Day’s Theme: Sideways rotation with three crisscrosses through the same price level throughout the day confirming a bullish trend. We may have multiple false tops or bottoms.
Behavior Around the High: A sharp decline off of the high through multiple support levels. That decline will stand out on a one-day chart.
Behavior Around the Low: A sharp decline moving into the low.
Trade Opportunities:
An opportunity to open a short position for a day trade around a high early in the morning. I’m advised to close that short position at the end of the day.
Overview
On April 21st, I’m advised to open a short position around a high early in the morning at an overbought crest or peak. That rally to the upside is halted by a fast, sudden move higher and then a breakdown through the diagonal trend line we’re rallying across. It looks like there’s a trough between noon and 2:00 p.m. that we’ll rally out of. I’m advised to exit the short position that we opened earlier at the end of the day. I’m also advised to be cautious trading today as it could be risky.
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