*Accuracy rating update: 85% or 11/13 predictions correct*
Day’s theme: A breakout that is nullified or made irrelevant in some way.
Behavior around the high: A fakeout around the high. We’ll expect to break through key resistance but fail to do so and break down through key support.
Behavior around the low: There’s a big move down to reach the low.
Trade opportunities:
An opportunity around a brief high before a notable decline.
An opportunity at a day’s low in the afternoon.
Possible opportunity at the end of the day.
Overview:
On October 28, 2022, we move higher out of a low in the pre-market. Around the open, we’ll see a notable drop on a one-day chart within a period of volatility. In the first half hour, there’s a big move to the upside that forms a day’s high. Between roughly 11:00 a.m. and noon, there’s a notable drop from that high followed by an attempt to establish support. Between 1:00 p.m. and 2:00 p.m., there’s a decline to and through a support level. We then move back up and reuse that support level. Between 2:00 p.m. and 3:00 p.m., there’s a trade opportunity around a day’s low.
At some point in the last two hours of trading, there’s a rally out of the dip to and through support. This is followed by a return to that support level and a rally off of support along a diagonal trend line. We then break through horizontal resistance to meet a secondary resistance level and then pull back to somewhere between those two price levels. In the last hour, we’ll see three pokes through the same price level followed by a sharp drop. There’s a bit of a decline either at the end of the day or in the post-market, likely to do with an agreement between two leaders. There’s a trade opportunity in the midst of the decline if it occurs at the end of the day instead of overnight.
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