Day’s Theme: There’s a prominent high and a prominent low.
Behavior Around the High: There’s a notable rally into the high that offers an opportunity to open up a short position.
Behavior Around the Low: The rally off of the low presents an opportunity to open up a short position.
Trade Opportunities:
I’m advised to trade around a notable reversal that would probably stand out on more than a one-day chart.
I’m advised to open protection around a peak or crest between 10:00 a.m. and 11:00 a.m.
Overview
On February 24th, in the pre-market there’s a failed attempt to break through key resistance on a one-day chart followed by a decline through key support on a one-day chart. Around the open, we’ll rally with a prominent move higher followed by a full retracement back down to where the move higher started. Out of the open, there’s a rally along a diagonal trend line that breaks through horizontal resistance, meets a secondary resistance level, and then pulls back to somewhere between those two price levels. There’s a sideways fluctuating rally along a diagonal trend line that takes us to a peak or crest between 10:00 a.m. and 11:00 a.m. I’m advised to open up protection there due to multiple false tops or an unexpected failure to move up through key resistance. The rally ends at some point with a significant decline through key support on a one-day chart between 10:00 a.m. and noon but likely closer to 11:00 a.m.
After that decline, we’ll successfully turn around and move to the upside. We’ll successfully turn key resistance into new support there. We’ll then decline off of that key resistance level. We’ll see price swings and a rally that increases with momentum moving into the high toward the end of the day. Around the close, there’s a breakout, but that breakout doesn’t hold. We’ll turn around and decline in the post-market.
Sneak Preview
On February 25, we’ll open lower.