*Accuracy rating update: 93% or 13/14 predictions correct*
Day’s Theme: A bullish move that offers an opportunity to open up a short position.
Behavior Around the High: A crest that we’ll sell down from to and through a support level. This is followed by a U-shaped reversal below that support level where we’ll move back up to reuse it as support.
Behavior Around the Low: A male ruler of nations is highlighted around the low. There’s also a key support level highlighted, however it’s somehow nullified.
Trade Opportunities:
A rally around the open marks an opportunity to open up a short position. That short position can be closed in the midst of a decline late morning or early afternoon.
I’m advised to trade around a decline that offers an opportunity to open up a long position.
Overview
On January 17th, we’ll attempt to reestablish support in the pre-market. There’s some sideways rotation around the open followed by a fast, sudden move higher that marks the end of that sideways rotation. That rally out of the open offers an opportunity to open up a short position. We’ll decline from that rally to and through a support level and then move back up to reuse that support level as support. The previously opened short position can be closed in the midst of a decline in the first hour and a half, and there’s another trade opportunity to open up a long position in the midst of the same decline. Between roughly 11:00 a.m. and noon, we’ll see a sideways S-formation within a channel.
Midday, we have a price level highlighted that’s a good point for a straddle/strangle utilizing options strategies. There’s a higher high than we had in the morning between roughly noon and 2:00 p.m. From that high, we decline to and through a support level and then move back up through that support level in a U-shaped reversal. In the last two hours, there’s a brief high that could be easily missed followed by a significant decline. There’s a move to the upside in the post-market and a resistance level highlighted.
Sneak Preview
A failed attempt to break through key resistance on the 18th.