Month’s Theme: A breakout out of a prominent trough or low on the scale of a one-month chart. In the second half of the month, we’ll have sideways rotation at a new, higher support level.
Behavior Around the High: Erratic behavior back and forth through the same price level. In the midst of that erratic behavior, we’ll revisit a crest that was recently a past opportunity.
Behavior Around the Low: A big, almost irrational move out of the low to reach for distant resistance.
Overview
Week One (2/1-2/4)
On February 1st, we’ll decline into a lowest low and there’s a notable rally out of that low that stands out on a multi-day chart. On the 2nd, there’s a sideways S-formation within a channel when we move up and down between resistance and support. There’s a prominent crest or peak early on the 3rd followed by a notable decline off of that crest or peak. That decline continues on the 4th and into the 5th where we’ll have a rally with sideways fluctuations.
Week Two (2/5-2/11)
That rally moves us into a day’s high and a prominent crest for the month toward the end of the day on the 5th. On the 6th, we’ll establish a stable foundation along support, however on the 7th we’ll fall from that support down to a secondary support level. We’ll then rotate sideways along that support for a bit. On the 8th, we’ll rally into resistance but have multiple failed attempts to break through that resistance. On the 9th, we’ll rally into and break out through key resistance. That’s followed by a decline with consecutively lower spikes up on the way down. On the 10th, there’s a failed attempt to break through key resistance followed by a decline through key support. On the 11th, we’ll decline through a support level into a trough that we recently declined through once before.
Week Three (2/12-2/18)
On the 12th, there’s a notable and unexpected move to the upside into a prominent crest or peak early in the day. On the 13th, there’s a trade opportunity in the midst of bearish price swings. On the 14th, there’s a rally along a diagonal trend line that ends with a fast sudden move higher to reach a key resistance level. We’ll then break down through that diagonal trend line with increasing volatility on the way down. On the 15th, there’s a fast, sudden move higher. On the 16th, we’ll come up against a key resistance level again and I’m advised to open up some protection there. On the 17th, we’ll decline through multiple support levels from a highest high. There’s a trade opportunity at the end of the day. We’ll have sideways fluidity along key support on the 18th.
Week Four (2/19-2/25)
There’s a highest high early in the day on the 19th. There’s also the halting of a bullish trend marked by a decline through key support. On the 20th, there’s a rally along a diagonal trend line where we break through horizontal resistance to meet a secondary resistance level and then pull back to somewhere between those two price levels. On the 21st, there’s a notable decline through multiple support levels that stands out on a multi-day chart. On the 22nd, there’s a holding pattern and a pop and drop. The pop will be toward the end of the day and the drop is the following day on the 23rd. On the 24th, there’s an unexpected move higher. On the 25th, there’s an intentional fake out or shake out and possibly a false triggering of an indicator. There may be another highest high and a pop and drop on the 25th.
Week Five (2/26-2/28)
On the 26th, we’ll revisit a support level that was recently a past opportunity after a sharp dip in the midst of some sideways rotation. On the 27th, out of a decline we’ll move from the bottom of a range to the top of a range on the scale of a multi-day chart. On the 28th, we’ll have a notable reversal and big decline that stands out on a one-day chart.
Sneak Preview
In early March there’s a sharp decline.