Updated: Jun 5
Day’s Theme: A sideways-fluctuating rally that precedes a decline.
Behavior Around the High: A decline down to and through support to meet a secondary support level. We’ll bounce along that support for a bit and then break down through multiple support levels.
Behavior Around the Low: A rally out of the low that increases with momentum moving forward in time.
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I’m advised to trade around a resistance level that’s highlighted that we’ve come up against and failed to break through before.
An opportunity to open a short position at a peak or crest midday. I would close that short position at the end of the day if there’s a notable decline.
On June 13th, we’ll open higher than we ended the prior day in the pre-market and then we’ll decline. That’s followed by a rally back up creating a U-shaped dip that forms near the intersection of two perpendicular diagonal trend lines. There’s a day’s low in the pre-market or around the open. There’s a move to the upside in the first half hour that takes us to a peak or crest. Around 9:50 a.m., we’ll sell down to and through support from that peak or crest to meet a secondary support level. We’ll rotate sideways along that support with some volatility between roughly 10:00 a.m. and 11:00 a.m. There are some price swings that take us to another crest around 11:00 a.m. We’ll sell off from that crest with a pretty substantial move to the downside around 11:10 a.m. We’ll decline through a key support level on a one-day chart.
We’ll either have a decision between two leaders highlighted or a prominent move higher followed by a full retracement midday. Key resistance is highlighted at a slightly higher crest or peak roughly between 1:00 p.m. and 2:00 p.m. There’s an opportunity to open a short position at that peak or crest. There’s a big move to the upside that will stand out on a one-day chart between 2:00 p.m. and 3:00 p.m. That will take us to another peak or crest toward the end of the day. We’ll likely decline off of that peak or crest. I would close the short position opened midday around the close in the midst of that decline.