Updated: Jun 5
Day’s Theme: The halting of a bullish trend marked by a sharp decline through a key support level on a one-day scale.
Behavior Around the High: A key technical price level that stands out on a multi-day chart.
Behavior Around the Low: A big move out of the low reaching for distant resistance.
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A decline between 11:00 a.m. and noon offers an opportunity to open a long position.
An opportunity to exit a long position after a rally around 2:00 p.m.
An opportunity to open a short position after a move to the upside toward the end of the day.
On June 29th, we’ll probably open lower in the pre-market and that’s followed by a fast, sudden move higher taking us to a peak or crest. Around the open, there’s a reversal that stands out and we’ll have a notable decline to a low. We’ll have some sideways rotation along key support between roughly 10:00 a.m. and 11:00 a.m. and a sharp dip within that sideways rotation that stands out. There’s also another crest between 10:00 a.m. and 11:00 a.m. That sharp dip takes us into a decline between roughly 11:00 a.m. and noon. That decline offers an opportunity to open a long position.
I’m advised to be cautious due to some sort of tricky chart behavior midday. After meeting key support midday, we’ll have a rally along a diagonal trend. We’ll break through horizontal resistance to meet a second resistance before pulling back to somewhere between those two price levels. That rally takes us to another peak or crest and an opportunity to exit a long position around 2:00 p.m. We’ll have the halting of a bullish trend marked by a sharp decline through key support between 2:00 p.m. and 3:00 p.m. Out of that decline, there’s a big move to the upside pushing the upper end of a range higher and taking us to a peak or crest toward the end of the day. That rally offers an opportunity to open a short position. There’s a decline around the close.
On June 30th, we’ll open lower.