Updated: Feb 20
Day’s Theme: The halting of a bullish trend marked by a sharp decline through a key support level that’s likely on the scale of more than a one-day chart.
Behavior Around the High: A rally into key resistance. When we hit that resistance, we’ll break down from there with consecutively lower spikes up on the way down.
Behavior Around the Low: Three pokes through the same price level followed by a sharp decline after the third poke taking us into the low.
I’m advised to trade a short position around a key technical price level.
On March 29th, we’ll open higher in the pre-market. That’s followed by a rally with a sideways-fluctuating decline. Right around the open, there’s a sharp decline off of a crest or peak that stands out on a one-day chart. There’s a notable reversal between roughly 10:00 a.m. and noon. From 11:00 a.m. to noon, we’ll see multiple failed attempts to break through key resistance.
There’s a day’s low or an important trough midday that brings us into oversold territory. That’s followed by a big move to the upside out of that oversold territory. There’s a rally along a diagonal trend line breaking through horizontal resistance. Between 2:00 p.m. and 3:00 p.m., there’s a fake out of some kind. It looks like we’ll then have a high around 3:00 p.m. in the midst of that fake out. In the last hour, there’s a failed attempt to break through key resistance at a key technical price level. We’ll pop above that resistance level briefly and then break back down through that resistance level shortly thereafter. We’ll then decline through key support. In the post-market, we’ll break down through multiple support levels.