*Accuracy rating update: 100% or 13/13 predictions correct*
Day’s theme: The halting of a rally marked by a sharp decline through a critical support level on a multi-day chart.
Behavior around the high: I’m advised to be cautious around the high. There may be some sort of fake out or shakeout.
Behavior around the low: We have a cash-out opportunity around the low. The day’s low will likely be right around the open.
Trade opportunities: Sell puts around the open.
Overview:
On November 3rd, we’ll have a low right around the open and there’s an opportunity to sell puts around this time. This will be followed by a move to the upside that turns resistance into new support. We then break back down through key resistance during selling from overbought territory on the RSI. Between roughly 10:00 a.m. and 11:00 a.m., we have some erratic behavior back and forth through the same price level. We then revisit a crest that was recently a past opportunity. Between roughly 11:00 a.m. and noon, there’s a big move higher followed by a full retracement of that move back down to where the rally started.
Between noon and 1:00 p.m., there’s a period of volatility with a sharp dip in the midst of that volatility that stands out on a one-day chart. We’ll then decline through multiple support levels due to multiple headwinds. Around the early afternoon, there’s a sharp decline through multiple support levels on a one-day chart. Around 2:00 p.m., there will be a bit of a peak, however it’s in the midst of a decline that moves into the end of the day. There’s a sharp drop around the close, but there’s a fast, sudden move higher out of that drop marking a breakout in the post-market.
Sneak peek:
We open up much higher on November 4th.