*Accuracy rating update: 100% or 10/10 predictions correct*
Day’s Theme: We’ll have a notable move higher either to fill a previous gap down or to move out of oversold territory.
Behavior Around the High: An unexpected and lucky move to the upside to reach the high.
Behavior Around the Low: Sideways fluctuations with a bullish trend preceding a decline. The low will likely be first thing in the morning.
Trade Opportunities:
An opportunity to open up a long position in the midst of a decline midday.
An opportunity to open up a short position in near overbought territory.
Overview
On January 4th, there’s a low in the pre-market. We’ll sell down from a crest to and through a support level and then have a U-shaped dip down and back up through that support level to reuse it as support. We’ll continue to decline in the first half hour, however there’s a notable move higher out of that decline and a break out on a one-day chart. This rally continues along a diagonal trend line into roughly 11:00 a.m. We’ll have a fast, sudden move higher and then we’ll break down through a diagonal trend line with increasing volatility on the way down.
There’s an attempt to reestablish support around midday. After that attempt to establish support, there’s a decline that offers an opportunity to open up a long position. We’ll revisit a crest that was recently a past opportunity in the midst of some erratic behavior. There’s an opportunity to open up a short position in near overbought territory.
Sneak Preview
We’ll break down with a pretty sharp decline overnight or in the following day.