*Accuracy rating update: 94% or 16/17 predictions correct*
Day’s theme: Quite a bit of volatility throughout the day. A place to put a straddle or strangle will be highlighted today.
Behavior around the high: A decline out of the high that marks an opportunity to open up a long position.
Behavior around the low: Out of a decline we’ll see a notable move to the upside, all the way from the bottom of a range to the top of the range.
Trade opportunities: Advised to trade around a fast, sudden move to the upside that marks the end of a period of volatility, likely around midday. There’s a brief opportunity to open up a short position in the post-market.
Overview:
On October 14, 2022, in the pre-market we have either a gap down or a continuation of the same price level from the previous day. We also meet an important resistance level in the pre-market that we break down from with consecutively lower spikes up on the way down. Right around the open, we have a move higher through a resistance level followed by a decline back down through that same price level shortly thereafter. We have an important price point in the first half hour. After the brief high around the open, we’ll fall significantly from that high through a support level to meet a secondary support level between roughly 10:00 a.m. and 11:00 a.m. We’ll rotate sideways along that price level for a bit. There’s an important resistance level or technical price level highlighted between 11:00 a.m. and noon. We attempt to establish support at that price level.
Between noon and 1:00 p.m., there’s a notable move. This may be where the fast, sudden move to the upside that marks a trade opportunity takes place. I’m advised to open up a short position. The move to the upside is followed by a decline. Between roughly 1:00 p.m. and 3:00 p.m., we’ll see movement out of the decline. Around 2:00 p.m. or 3:00 p.m., we’ll see three pokes through the same price level, and after the third poke there’s a sharp decline. In the last hour, we’ll see bearish price swings with a notable drop. Right around the close, there’s a support level that we rotate alongside. This is followed by a rise to meet the closest resistance. We tap that resistance and then come back down to meet support. In the post-market, there’s a move to the upside marking a brief opportunity to open up a short position.
Sneak preview:
A fast, sudden move to the upside. This marks a brief trading opportunity midday before a notable failure.
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