Day’s Theme: A holding pattern with a pop and drop.
Behavior Around the High: A lot of price change off of the high.
Behavior Around the Low: Around the low, we’ll have a notable move to the upside, even in the face of seemingly overwhelming headwinds.
Exclusive Trade Opportunities for Subscribers:
I’m advised to trade around a sideways-fluctuating rally that precedes a decline.
An opportunity to open a long position for a day trade midday. I would close that after a move higher toward the end of the day.
Overview
On June 16th, there’s a notable decline in the pre-market. We’ll have a bit of a rally after visiting a support level that we recently met once before. Around the open, there’s a notable decline through multiple support levels. In the first half hour, there’s a prominent move higher that successfully turns resistance into new support. We’ll have some sideways bumping along resistance between roughly 10:00 and 11:00. Between 11:00 and noon, there’s a notable move higher, likely out of oversold territory. We’ll then decline and that decline offers an opportunity to open a long position on the scale of a one-day chart.
Out of that decline midday, we’ll have a rally along a diagonal trend line. That rally ends with a fast, sudden move higher. That move offers an opportunity to close the long position opened earlier. That’s followed by a significant decline between 2:00 and 3:00. We’ll sell off through multiple support levels in the last hour off of an overbought peak or crest. There’s a reversal around the close.
Sneak Preview
A notable move higher or a gap up over the weekend.