*Accuracy rating update: 93% or 13/14 predictions correct*
Day’s theme: A notable move to the upside that will stand out on a multi-day chart.
Behavior around the high: Around the high, we meet a critical resistance level. There’s a trade opportunity around this resistance level.
Behavior around the low: There’s a trade opportunity around the low.
Trade opportunities:
An opportunity to open a call and put spread in the first hour of trading.
An opportunity around the high which will be at a resistance level.
Overview:
Overnight or in the pre-market on November 2nd, we have a big move higher that reaches for a distant resistance level. Right at the open, there’s a critical price level highlighted. There’s an opportunity around this time to position oneself to play both directions with a call and put spread. We’ll have a lot of price movement along a diagonal trend line between 10:00 a.m. and 11:00 a.m. We’ll break through horizontal resistance to meet a secondary resistance, and then we pull back to somewhere between those two price levels. We rotate along support between roughly 11:00 a.m. and noon. This is followed by an unexpected failed attempt to break through key resistance. We then decline into a low with consecutively lower spikes up on the way down. These spikes up will likely meet moving averages as resistance levels.
It looks as though we will decline for most of the rest of the day. Around 2:00 p.m., we decline to and through a support level, meet another support level, and then rotate alongside that level. In the last hour, there’s a failed attempt to break through key resistance on a one-day chart, followed by a decline through a key support level on a one-day chart. The day’s low will likely be in the last hour of trading. Right around the close, there’s a fast, sudden move to the upside. In the post-market, we’ll see a sideways fluctuation with a bullish trend that precedes a decline.
Sneak preview:
A trade opportunity the morning of November 3rd. If we end lower on the 2nd, we’ll open higher on the 3rd, and if we end higher on the 2nd, we’ll open lower on the 3rd.