*Accuracy rating update: 100% or 16/16 predictions correct*
Day’s theme: A brief peak that could be easily missed. We’ll fall from that peak through multiple support levels.
Behavior around the high: A rally that’s nullified or somehow made irrelevant.
Behavior around the low: N/A
Trade opportunities:
I’m advised to open up protection around the open.
Overview
On December 14th, it looks like we’ll have a pretty notable move higher in the pre-market where we push the upper end of a range higher. We’re at a critical price level right at the open and price action will flatten out around this level. I’m advised to open up protection at this time. We’ll see a period of sideways rotation and a sharp drop within that sideways rotation. That drop will bring us back down to a support level that was recently a past opportunity. Between roughly 10:00 a.m. and 11:00 a.m., we’ll have some rallying with increasing momentum as we move forward in time. From roughly 11:00 a.m. to noon, there will be some sideways rotation along a key support level. We’ll then rise to meet the nearest resistance and then fall back down to continue along that previous support level.
There’s a failed attempt to break through key resistance between roughly noon and 1:00 p.m. It will look like we’ll break through that price level, however we’ll fail to do so and then break down through key support. We attempt to reestablish support between roughly 1:00 p.m. and 2:00 p.m. A period of volatility between 2:00 p.m. and 3:00 p.m. offers an opportunity to position oneself in both directions utilizing options strategies. In the last hour, there’s a notable move to the upside and the beginning of a rally. Right around the close, we’ll have a drop from a support level to a secondary support level and then rotate sideways along that support level. There’s a U-shaped dip in the post-market.
Sneak preview:
Sideways fluctuations with a bearish trend preceding a rally. There’s also a significant trade opportunity on the 15th.