*Accuracy rating update: 93% or 13/14 predictions correct*
Day’s theme: A rally that increases with momentum moving forward in time and a decline that increases with momentum moving forward in time.
Behavior around the high: The high will be toward the end of the day.
Behavior around the low: We decline into the low and then rally back out of it pretty substantially.
Trade opportunities:
A midday decline presents an opportunity to open up a long position for a quick day trade.
Overview
On December 19th, there’s a bit of a rally in the pre-market and we’ll open higher than the previous day's close. Around the open, we’ll see a key support level on at least a one-day chart. We’ll decline from a peak or crest that’s an easily missed opportunity. We’ll drop to meet a critical support level and then rotate sideways along that support level between roughly 10:00 a.m. and 10:45 a.m. Around 10:45 a.m., we have a fast, sudden move to the upside marking the end of a period of sideways rotation along support.
That move to the upside doesn’t last very long and there’s a decline that commences off of that fast, sudden move higher. That decline presents an opportunity to open up a long position for a quick day trade. We’ll then begin to rally off of that decline, and in the midst of that rally there’s an opportunity to close that long position for a day trade when we hit a critical technical price level. We’ll rally with sideways rotation along that price level increasing with bullish momentum moving into the end of the day. In the last hour, there’s a move higher through resistance. We stay above that resistance level briefly and then break back down with a full retracement through the same price level. There’s a very notable move to the upside on a one-day chart right around the close that reaches for distant resistance. We’ll likely have the same high that we had earlier in the day.
Sneak Preview
A notable decline on the 20th.