Day’s Theme: A period of volatility with a sharp drop that stands out within that period of volatility. This behavior is somehow nullified, however.
Behavior Around the High: An unexpected move to reach the high.
Behavior Around the Low: A rally that starts within the low.
I’m advised to trade around a fast, sudden move higher on a one-day chart.
On May 23rd, there’s a notable decline that stands out on a one-day chart. Right around the open, there’s either a holding pattern with a pop and drop or congress is highlighted. In the first half hour, there’s a high for the day at a failed attempt to break through key resistance followed by a sharp decline around 9:50 a.m. We’ll establish support and then have another prominent move higher between roughly 10:00 a.m. and 11:00 a.m. creating an overbought crest or peak. We’ll sell off from that crest or peak through multiple support levels into the noon hour. There’s either an agreement between two leaders highlighted or a prominent move higher followed by a full retracement back down midday.
There’s an important resistance level highlighted between 2:00 p.m. and 3:00 p.m. Off of that resistance level, there’s a significant move to the downside which takes us into a day’s low between 2:00 p.m. and the close. Out of that low, there’s a rally to the upside into a key resistance level on a one-day chart. We’ll then break down with consecutively lower spikes up on the way down somewhere between 2:00 p.m. and the close. Around the close, there’s a notable move out of a decline from the bottom of a range to the top of a range. That’s followed by another decline that increases with momentum moving into the close and into the post-market.
On May 24th, we’ll open notably higher.