*Accuracy rating update: 100% or 14/14 predictions correct*
Day’s Theme: Sideways price swings that are likely bullish but it’s possible that they’re bearish.
Behavior Around the High: A high both early in the day and later in the day. There will be a sharp decline off of both highs.
Behavior Around the Low: We’ll meet a resistance level and break down from that price level with consecutively lower spikes up on the way down to meet the low. The low doesn’t hold for long, however.
Trade Opportunities: N/A
Overview
On January 26th, we’ll see three crisscrosses back and forth through the same price level confirming a bullish trend in the pre-market. That bullish trend doesn’t hold, however. There will be some erratic behavior back and forth through the same price level around the open. In the midst of that erratic behavior, we’ll revisit a crest that was recently a past opportunity. We’ll then see a notable decline off of that crest. Out of that decline, we’ll then have a fast, sudden move to the upside to reach for the first high of the day between roughly 10:00 a.m. and 11:00 a.m. We’ll fall from that high after a failed attempt to break through a key resistance level followed by a decline through key support between roughly 11:00 a.m. and noon.
Midday, there’s a big move to the upside to reach for a key resistance level. We’ll then have some sideways rotation along that resistance level that ends with a fast, sudden move higher to meet another high for the day. From that high, we’ll decline to and through a support level. There’s a U-shaped reversal below that support level and then we’ll move back up to reuse that support level as support between roughly 2:00 p.m. and 3:00 p.m. In the last hour, we’ll see a notable decline off of a high that stands out on a one-day chart. We’ll break down through a support level that we recently broke down through. There will be some sideways rotation that increases with bullish momentum in the post-market.
Sneak Preview
On the 27th, we’ll open lower and break down through multiple support levels.