Updated: May 8
Day’s Theme: Erratic behavior back and forth through the same price level. In the midst of that behavior, we’ll revisit a crest that was recently a past opportunity, likely early in the morning.
Behavior Around the High: A rally into the high that offers an opportunity to open a short position.
Behavior Around the Low: There’s a fast, sudden move higher out of the low.
I’m advised to trade around a rally that increases with momentum moving forward in time.
An opportunity to open a short position after a move to the upside out of a trough in the morning.
On March 7th, there’s an important support level highlighted in the pre-market. Congress may also be highlighted around this time. Around the open, there’s a move higher through resistance. We’ll stay above resistance briefly and then break back down through the same price level. We’ll decline into a trough around 10:00 a.m. Out of that trough, there’s a notable move to the upside that stands out on a one-day chart. This move offers an opportunity to open up a short position.
We’ll establish support and have some sideways rotation midday. There’s a rally and a big move to the upside that starts after establishing support. We’ll establish support at a higher level between roughly 1:00 p.m. and 2:00 p.m. There’s then an unexpected move higher into a crest or peak between 3:00 p.m. and the close. We’ll then sell from that overbought crest or peak with increasing bearish momentum as we move forward into the close.
On March 8th, we’ll open higher in the pre-market and also have a notable sell off in the pre-market, however that behavior is somehow nullified. #6ofCups