Month’s theme: Sideways rotation with a sharp dip in the midst of that sideways rotation.
Behavior around the high: The high will likely be in the third week of the month. We’ll have an unexpected failure to break through a resistance level on at least a one-month chart and then decline through support.
Behavior around the low: We’ll have quite a bit of volatility around the low. There’s also an important resistance level that’s highlighted. There’s a swing trade opportunity around the low that involves an intentional fake out or shake out.
Trade opportunities:
A swing trade opportunity on the 6th.
A swing trade opportunity on the 8th involving a rally along a diagonal trend line that ends with a fast, sudden move higher.
A trade opportunity toward the end of the day on the 19th or early on the 20th in the midst of selling from a peak or crest on a one day chart.
A swing trade opportunity on the 27th involving a key resistance level on a one-day chart.
Overview:
Week One (12/1-12/2):
On December 1st, we’ll have a move to the upside out of a trough. We’ll then see a notable move higher out of that trough on the 1st and into the 2nd, and then we’ll see a decline off of that move to the upside.
Week Two (12/5-12/9):
The first month’s low will be somewhere between the 2nd and the 5th. On the 5th, there will be a gap up and a notable amount of price movement. On the 6th, we’ll have sideways fluctuations with a bearish trend preceding a rally. There’s a swing trade opportunity early in the day on the 6th. There’s likely a sharp dip on the 6th as well. On the 7th, it looks like we’ll have a rally to reach a key resistance level on a one-month chart. We’ll hit that resistance level and then break down with consecutively lower spikes up on the way down. On the 8th, there may be another sharp dip, however we’ll also have a prominent move higher on a one-month chart. That move higher will be followed by a full retracement back down. There’s a swing trade opportunity on the 8th involving a rally along a diagonal trend line that ends with a fast, sudden move higher. On the 9th, we’ll have bullish behavior and will continually bump along resistance and then break through resistance.
Week Three (12/12-12/16):
On the 12th, it looks like we’ll have another peak or crest. We’ll sell down pretty significantly from that peak or crest toward the end of the day. There’s an agreement between two parties or a merger of some kind that’s highlighted on the 13th in the midst of selling from that peak or crest. We’ll also have a holding pattern followed by a pop up and then a drop on the 13th. There’s a lot of price movement toward the end of the day on the 13th and into the 14th. There are multiple failed attempts to break through key resistance on the 14th. On the 15th, we’ll have a sharp dip to meet a key support level in the midst of sideways rotation. We’ll rise to meet key resistance on a one-month scale and then fall back down to continue rotating along key support. We’ll see a significant move to the downside in the midst of sideways fluctuation between the 15th and the 16th. On the 16th, there’s quite a bit of price movement to the upside that precedes a decline on the 19th from a crest or peak.
Week Four (12/19-12/23):
On the 19th, we’ll sell down from a crest or peak with increasing momentum as we move forward into the day. There’s a swing trade opportunity involving a significant drop from a prominent peak or crest on at least a one-day chart. I’m advised to place a trade toward the end of the day on the 19th or early on the 20th in the midst of selling from a peak or crest on a one day chart. On the 20th, we’ll have a notable decline on a one-month chart to reach a key support level. That decline will continue into the 21st and will probably reach the month’s low. There’s a prominent peak that will stand out midday on the 21st, however this is followed by a sharp drop on a one-month chart. We’ll likely meet the previous key support level one more time. On the 22nd, we’ll have a big move to the upside that reaches for distant resistance and a trade opportunity at that high. I’m also advised to open up protection at this time. We’ll have three failed attempts to break through key resistance on the 23rd.
Week Five (12/27-12/30):
The market is closed on the 26th. On the 27th, we’ll likely gap down early in the morning. This is followed by a big move to the upside that reaches for distant resistance out of oversold territory. There’s a swing trade opportunity here involving a key resistance level on a one-day chart. We’ll also see a sharp drop on a one-month chart on the 27th. On the 28th, we’ll have three pokes through the same price level followed by a sharp drop after the third poke. On the 29th, we’ll have sideways price swings and a swing trade opportunity involving selling from a notable peak or crest on a one-day chart. On the 30th, there will be a move higher through a key resistance level on a one-month chart. We’ll stay above that resistance level briefly and then break back down through the same price level shortly thereafter.
Sneak preview:
We’ll have the completion of a bullish trend in January.