Updated: Feb 20
Day’s Theme: A trade opportunity.
Behavior Around the High: There’s a decline through a support level to meet another support level. We’ll bounce sideways along that support level for a bit and then break down through multiple support levels off of the high.
Behavior Around the Low: There’s a notable fake out around the low that will try to influence investors’ decisions.
I’m advised to trade around an important range, likely around the low.
On March 20th, we’ll open lower in the pre-market and decline until a fast, sudden move higher marking the end of that decline. That fast, sudden move higher takes us into a near overbought crest around the open. We’ll sell off of that crest into a low between 10:00 a.m. and 11:00 a.m. There are some bullish price swings from roughly 11:00 a.m. to noon. There’s a holding pattern midday with a pop and drop and possibly something to do with congress around this time.
There’s a notable move higher that reaches for distant resistance from roughly 1:00 p.m. to 2:00 p.m. Out of that move to the upside, there’s a notable decline that starts around 2:30 p.m. We’ll continue to decline into the last hour, however out of that decline there’s a notable move higher, even in the face of seemingly overwhelming headwinds. That brings us to a key resistance level that we saw earlier in the day. There’s likely a bit of a drop in the post-market.
On March 21st, we’ll successfully turn resistance into new support.