*Accuracy rating update: 100% or 14/14 predictions correct*
Day’s theme: A failed attempt at a breakout or a brief breakout that doesn’t last.
Behavior around the high: An unexpected failed attempt to break through key resistance around the high. We then turn around and decline through key support on a one-day chart.
Behavior around the low: An unexpected move to the upside out of the low.
Trade opportunities: I’m advised to trade around a prominent trough on a one-day chart.
There’s a trade opportunity at a new support level between 10:00 a.m. and 11:00 a.m.
I’m advised to cash in at the end of the day.
Overview:
On October 31st, we have a notable move to the upside out of oversold territory in the morning. There’s also a day’s low early in the morning. We have a notable move to the upside out of that day’s low and some volatility. There may be some news that comes out around that low. Between roughly 10:00 a.m. and 11:00 a.m., we have a move to the upside into a day’s high that successfully turns resistance into new support. There’s a trade opportunity around that support level, however we don’t stay at that high very long. We decline from that new support level between roughly 11:00 a.m. and noon after being near overbought territory on the RSI.
Between noon and 1:00 p.m., there are sideways price swings with a bullish trend. I’m advised to open up some protection in the midst of a crest around this time. A decline commences after three criss-crosses back and forth through the same price level somewhere between noon and 2:00 p.m. The third cross will confirm a bullish trend but it appears to be a fakeout. There’s a move to the upside followed by a full retracement back down. We have a notable drop toward the end of the day and a lot of price movement around the close. There’s a move higher through resistance followed by a breakdown through that same price level shortly thereafter. This will be in the midst of some sideways price swings with a bullish trend.
Sneak preview:
A notable decline due to multiple headwinds on November 1st.