Day’s Theme: Some significant price swings.
Behavior Around the High: A decline off of the high that offers an opportunity to open a long position.
Behavior Around the Low: A sell off that starts near an overbought crest.
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I’m advised to trade around a decline that increases with momentum moving forward in time.
Overview
On July 5th, we’ll have the completion of a rally in the pre-market marked by a decline off of a peak or crest. That takes us to a support level around the open. We’ll have sideways rotation out of the open followed by a move to the upside. We’ll meet a key resistance level around the open followed by a lot of price change to the downside. That takes us to a low around 11:40 a.m. Off of that low, there’s a rally along a diagonal trend line that breaks through horizontal resistance to meet a secondary resistance around 12:15 p.m. That ends with a fast, sudden move higher and then a breakdown through that diagonal trend line with increasing volatility on the way down.
There’s another low somewhere between 1:00 p.m. and 2:00 p.m. That low forms after a decline through multiple support levels. There’s a big move to the upside reaching for distant resistance between 2:00 p.m. and 3:00 p.m. There’s a decline off of a crest in the last hour. Right around the close, there’s a big move out of a decline taking us to a resistance that we’ll fail to break through.
Sneak Preview
On July 6th, we’ll likely gap down.