**Accuracy rating update: 86% or 12/14 predictions correct**
Day’s theme: Sideways fluctuations with a bullish trend that precede a decline. There’s also a notable trough toward the beginning and end of the day.
Behavior around the high: 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.
Behavior around the low: We’ll likely see the low twice around a sideways S-formation within a channel.
Trade opportunities:
I’m advised to trade around the completion of a bullish trend, likely on the scale of a one-day chart.
Overview
On February 7th, there’s a notable and improbable move as well as a significant opportunity in the pre-market. We’ll move higher into a peak or crest at a key critical resistance level. We’ll have a notable selloff from an overbought crest or peak around the open. Out of that selloff, there’s a reversal to the upside in the first half hour or so. This will be followed by a second reversal to the downside. We’ll move into a low between roughly 10:00 a.m. and 11:00 a.m. We’ll create a stable foundation between roughly 11:00 a.m. and noon.
There’s a breakout midday off of that foundation, however that breakout is temporary and doesn’t last. From that breakout, there’s a notable decline that will stand out and increases with momentum moving forward in time that will start around 12:15 p.m. or 12:25 p.m. We’ll decline from a support level down to another support and then have sideways rotation along support between 2:00 p.m. and 3:00 p.m. That sideways rotation increases with bullish momentum and creates another crest. From that crest, we’ll sell down significantly to and through support, and then come back up to reuse that support level as support. We’ll come back into a crest and near overbought territory around the close. We’ll sell off from that crest with a significant drop in the post-market or overnight.