*Accuracy rating update: 100% or 15/15 predictions correct*
Day’s Theme: A notable move higher that will stand out on a multi-day chart.
Behavior Around the High: Two declines with an incline in between which creates a sideways S-formation between a channel.
Behavior Around the Low: A crest from which we sell down to and through a support level and then we have a U-shaped dip creating the low. We’ll then come back up and reuse that price level as support.
Trade Opportunities:
A trade opportunity around three crisscrosses through the same price level late morning or midday.
Overview
On December 30th, in the pre-market we have a U-shaped dip that forms near the intersection of two perpendicular diagonal trend lines. It looks like we’ll have a move higher through resistance. We’ll stay above that resistance level briefly and then break back down through it. At the open, we’ll rally into a key resistance level on a one-day chart, and then we break down from that resistance level with consecutively lower spikes up on the way down into roughly 10:00 a.m. There’s another resistance level highlighted around 10:00 a.m. to 11:00 a.m. After hitting that resistance level, there’s quite a bit of volatility. We’ll then do three crisscrosses back and forth through the same price level. There’s a trade opportunity around this price level.
We’ll then have a big move higher midday in the midst of some erratic behavior back and forth through the same price level. We’ll revisit a crest around this time that was recently a past opportunity. Between roughly 1:00 p.m. and 2:00 p.m., there’s a prominent move higher on a one-day chart followed by a full retracement of that move. There’s a move higher along a diagonal trend line between roughly 2:00 p.m. and 3:00 p.m. We’ll break through horizontal resistance to meet a secondary resistance level and then fall back to somewhere between those two price levels. In the last hour, there’s a notable drop where we break through a support level that we had recently broken through before. We'll end at a day’s high around the close. There’s some bumping along resistance in the post-market.
Sneak Preview
We’ll open higher with an opportunity to open up a short position.