Updated: May 29
Day’s Theme: A failed attempt to break through key resistance on a one-day scale followed by a decline through key support on a one-day scale. That chart behavior is nullified or somehow made irrelevant, however.
Behavior Around the High: We’ll successfully turn resistance into new support.
Behavior Around the Low: We’ll successfully establish support around the low.
I’m advised to trade around the beginning of a rally with a big move to the upside.
On June 2nd, we’ll likely see a lower price level early in the morning. There’s an establishment of support in the pre-market with a prominent move higher. There’s a period of volatility that ends with a fast, sudden move higher right around the open. That’s followed by some sort of intentional fake out or shake out to cause impulsive decision-making. There’s a key resistance level on a one-day scale that we hit somewhere around 11:00 a.m. We’ll then fall from that resistance level with consecutively lower spikes up on the way down.
There’s a lot of price change to the downside midday. We’ll break through one support level to meet a secondary support level and rotate sideways along that support for a bit. Somewhere between 11:00 a.m. and noon there’s a bit of a rally off of that rotation along support. That rally is halted with a breakdown through a key support level midday. We’ll have a notable breakout on a one-day scale between roughly 1:00 p.m. and 2:00 p.m. that takes us into a period of volatility between 2:00 p.m. and 3:00 p.m. There’s a sharp drop that stands out within that period of volatility. Around 3:00 p.m., there’s probably a pretty big and unexpected move to the upside that takes us to a key resistance level on a one-day scale. There’s a sideways S-formation around the close. In the post-market, there’s a rally along a diagonal trend line that breaks through horizontal resistance to meet a secondary resistance and then pulls back to somewhere between those two price levels.
On June 5th, there’s a significant trade opportunity on a multi-day scale.