Updated: Jan 16
Day’s Theme: We’ll reach a key price level after having a significant move into a high.
Behavior Around the High: There’s a notable move into the high midday.
Behavior Around the Low: We should touch the lowest low twice. There’s a breakout between the two lows.
I’m advised to open a short position around a move higher through resistance. We’ll stay above that resistance level briefly and then break back down with a full retracement.
An opportunity to open a short position in the midst of a move higher midday.
On January 14th, in the pre-market we’ll have a failed attempt to break through key resistance. Around the open, there’s a decline that ends with a fast, sudden move higher into the first prominent high or crest for the day. There’s multiple failed attempts to break through key resistance in the first half hour. It looks like we’ll also have selling from a near overbought crest or peak in the first half hour. Out of oversold territory between 10:00 a.m. and 11:00 a.m., we should see a notable move higher. There’s a rally that continues into 11:00 a.m. Between 11:00 a.m. and noon, there’s a fast, sudden move higher followed by a breakdown through a diagonal trend line with increasing volatility on the way down.
We’ll have some sideways fluctuations and a big move to the upside out of the low to reach for the day’s high around midday. There’s an opportunity to open a short position in the midst of that move higher.
I’m advised to be cautious on the 15th. There’s a move to the upside, however there are multiple false bottoms. There’s also a trade opportunity and a prominent high.