Updated: Feb 20
Day’s Theme: A rally that offers an opportunity to open a short position. A lot of trade opportunities today.
Behavior Around the High: We’ll decline out of the high and break down through a support level that we recently broke down through once before.
Behavior Around the Low: A strong resistance level that we bump up against several times near the low. We’ll then likely hit the low at some point after bumping up against that resistance level.
An opportunity to open a short position in the midst of a move higher around the open. That position could be closed at the bottom of a range around 10:00 a.m.
An opportunity to open a long position after closing the short position at 10:00 a.m. I would close that long position in the midst of a breakout midday.
A trade opportunity midday in the midst of a breakout.
A trade opportunity around the close.
On March 21st, we’ll start the day higher in the pre-market. We’ll then decline from near overbought territory from a crest in the pre-market. We’ll continue to sell off into the open with a notable decline around the open. Also around the open, we’ll see a move higher which offers an opportunity to open up a short position. There’s a decline through multiple support levels following that move higher. That bearish trend ends at the bottom of a range around 10:00 a.m. That’s followed by a notable move to the upside where we bump up against a key resistance level on the scale of at least a one-day chart if not a multi-day chart. Between 11:00 a.m. and noon, we’ll break through a resistance level, stay above it briefly, and then break back down through that same price level with a full retracement.
There’s a trade opportunity midday in the midst of a breakout. At the end of the day, there’s a move to the upside into a key resistance level. We’ll establish new support at that resistance level. We’ll have three crisscrosses through that price level. There’s a trade opportunity right around the close. After the third cross through that price level around the close, a bullish trend is confirmed, and that’s followed by a move to the upside in the post-market.
On March 22nd, we’ll open higher, however there’s a full retracement of that move and we’ll decline early in the morning.