*Accuracy rating update: 100% or 10/10 predictions correct*
Day’s theme: A notable reversal on a one-day chart. We'll also likely see a month's low.
Behavior around the high: A rally along a diagonal trend line that breaks through horizontal resistance and meets a secondary resistance level. We then drop down to somewhere between those two resistance levels.
Behavior around the low: A fake out or a big move to the upside around the low. There will be a lot of volatility into the low or coming out of the low.
Trade opportunities:
There’s a trade opportunity right around the open when we move higher through a resistance level, stay there briefly, and then break back down through that same price level.
I’m advised to open up some protection in the midst of a big move out of the day’s low in the early afternoon.
Overview:
On August 31st, we have a move higher in the pre-market turning resistance into a new support level. There’s a trade opportunity right around the open when we move higher through resistance, stay there briefly, and then break back down through that same price level. We then meet a day’s high around this time. There’s a sideways S-formation between horizontal resistance and support that takes place after that day’s high is met. There’s a big move out of a day’s low and a fake out in the midst of the low in the early afternoon. I’m advised to open up some protection around this time because this will be followed by a big move to the downside. Between roughly 11:00 a.m. and noon, there’s a big move to the upside that reaches for distant resistance, followed by a sharp drop midday or early afternoon.
We’ll then see a big move to the upside between roughly 1:30 p.m. and 3:00 p.m., and this is followed by a revisiting of past problems and a big move to the downside. Congress may be highlighted right around the close, and an agreement between two leaders or a merger of some kind is also highlighted right around the close or in the post-market.
Sneak preview:
We have a failed attempt to break through key resistance followed by a decline through a key support level on September 1st. It also looks like we’ll have a higher price point than we do today.