Month’s theme: A sharp dip that stands out on a one-month chart within a period of volatility. There’s also a prominent high that will stand out on a multi-day chart.
Behavior around the high: There’s a decline off of the high that takes us down to a support level on a one-month scale that we’d recently broken through once before.
Behavior around the low: Sideways rotation along a key support level on a multi-day chart that increases with volatility as we move forward into the month.
Overview
Week One (2/1-2/4)
On February 1st, we’ll have a decline through multiple support levels that increases with momentum as we move into the end of the day. We’ll also have a prominent crest for the month midday. On the 2nd, out of oversold territory we’ll have a notable move to the upside. On the 3rd, there’s a key resistance level highlighted early in the day. Volume and volatility will flatten out a bit at this resistance level. I’m advised to open up protection early in the day on the 3rd. On the 4th, there’s a notable decline that offers an opportunity to open up a long position. There’s a lowest low early in the day on the 4th followed by a prominent crest or peak at the end of the day.
Week Two (2/5-2/11)
On the 5th, we’ll have a rally into a resistance level, and then we’ll have a breakdown with consecutively lower spikes up on the way down. On the 6th, there’s a period of volatility that ends with a fast, sudden move higher. On the 7th, there’s a notable fake out or shake out after a false triggering of an indicator to get traders to make impulsive decisions. There’s also a move to the downside that will stand out on a one-month chart.
On the 8th, there’s a prominent crest or peak after creating support at a low and then moving significantly higher. We’ll create a new support level after that move to the upside. We’ll break down to and through that support level to meet a secondary support level on the 9th. We’ll then rotate sideways along that key support. On the 10th, we’ll open higher, however there’s a decline into the middle part of the day. There’s either a fast, sudden move higher at the end of the day on the 10th or a move higher on the 11th ending that period of decline. Something with congress may be highlighted on the 10th or 11th. There’s sideways rotation on the 11th and at the end of the day, there’s a notable decline.
Week Three (2/12-2/18)
On the 12th, we’ll move higher through resistance to meet a highest high for the month and then fall back down shortly thereafter through the same price level with a full retracement. On the 13th, we’ll see the month’s high again, and we’ll have sideways fluidity along a key support level around that high. On the 14th, there’s a notable trough or low that will stand out on a one-month chart. On the 15th, there’s a sideways S-formation within a channel.
There’s a rally out of that S-formation into the 16th along a diagonal trend line. There’s a fast, sudden move higher marking the end of that rally toward the end of the day on the 17th. There’s a U-shaped dip on the 18th that forms near the intersection of two perpendicular diagonal trend lines. We’ll have a notable rally that commences out of the U-shaped dip midway through the day.
Week Four (2/19-2/25)
That rally will bring us into a notable crest on the 19th. It’s possible we’ll see another highest high on the 19th. I’m advised that there’s an imminent failure ahead, likely on the 25th. There’s a key resistance level highlighted on the 20th where volume and volatility flatten out a bit. On the 21st, there’s a lot of bumping along resistance and breaking through resistance. We’ll come back to a highest high on the 22nd. I’m advised to be cautious due to multiple false bottoms. On the 23rd, there’s a notable decline through multiple support levels. There’s a notable move higher on the 24th that brings us back to another highest high. There’s a higher peak or crest on the 25th followed by a sharp decline to the lowest low.
Week Five (2/26-2/28)
On the 26th, there’s a halting of a bullish trend marked by a sharp decline through key support. We’ll come back to another highest high for the month on the 27th where we’ll establish support. We’re bound by the upper end of a range on the 28th.
Sneak Preview
In March, there’s a crest that we revisit that was recently a past opportunity in the midst of some erratic behavior back and forth.