Day’s Theme: An intentional fake out or shake out of some kind, however this is somehow nullified or made irrelevant.
Behavior Around the High: A crest at the high from which we sell down to and through a support level on a one-day scale. We’ll do a U-shaped reversal below that support level and then come back up to reuse that support level as support.
Behavior Around the Low: In the midst of erratic behavior back and forth through the same price level we’ll revisit a crest that was recently a past opportunity.
Trade Opportunities: N/A
On March 14th, my sense is that we’ll have a gap up overnight. In the pre-market, there’s a sideways S-formation within a channel, meaning we’ll have a move to the downside off of resistance down to support, move back up to resistance, and then have a full retracement back down to support. There’s a big, unexpected move to the upside to reach for distant resistance out of the open. There are three pokes through that resistance level followed by a sharp drop after the third poke. That’s followed by a prominent move higher into what’s probably the high for the day around 11:45 a.m. That bullish trend is halted when we decline through key support between noon and 2:00 p.m.
Around 2:15 p.m., there’s a notable move to the upside that stands out on a one-day chart. That’s followed by a move to the downside in the last hour. I’m advised not to chase that rally to the downside.
On March 15th, we’ll open higher at a near overbought crest or peak in the pre-market. We’ll then sell off from that crest or peak.