*Accuracy rating update: 100% or 12/12 predictions correct*
Day’s theme: A decline from a support level to meet another support level and then we rotate sideways along that support level.
Behavior around the high: We’ll move from the bottom of a range to the top of a range to meet the high.
Behavior around the low: An important price level and a good opportunity to cash-in on a position.
Trade opportunities: N/A
Overview:
On December 16th, in the pre-market we’ll have an unexpected move higher. Congress is highlighted either in the pre-market or right around the open and we'll see a bit of a holding pattern. We’ll then have a drop from a support level down to a second support level and then rotate sideways along that support in the first half hour. There’s a move to the upside of that support level out of that sideways rotation between roughly 10:00 a.m. and 11:00 a.m. That move brings us to another support level with equal amounts of bulls and bears trading. That’s followed by a sharp decline through multiple support levels midday. We’ll eventually continue to rotate sideways along support.
There’s a period of volatility with a sharp dip that stands out in that period of volatility between roughly 1:00 p.m. and 2:00 p.m. It looks like we’ll have a notable move higher that possibly creates a high between roughly 2:00 p.m. and 3:00 p.m. There’s a U-shaped dip in the last hour forming near the intersection of two perpendicular diagonal trend lines. A critical resistance level is highlighted right around the close. There’s also volatility that commences and increases in volatility as we move forward into the post-market.
Sneak Preview
A lot of ground is covered with movement to the upside over the weekend. We’ll open higher on the 19th.