Updated: Aug 29, 2022
A trade opportunity to cash in with a courageous rally out of a decline.
We have a trade opportunity with a significant U-shaped dip in the pre-market. In the first half hour, we have a support level that is highlighted and a move higher out of that. There is a lull in volatility roughly between 10am and 11am. In the following hour, we have a move higher based on some economic news or some economic happening between 11am and 12pm. Between noon and 1pm, we have a sharp decline through multiple support levels or headwinds may be at play. Then we have an opportunity to short positions, to buy puts, or to protect long positions between 1pm and 2pm. I am advised to be careful at this time. There is a sharp decline so we probably have a big push in the midst of this decline.
There is likely some trickery where we push higher in the midst of that, and it gives us the opportunity to possibly open some more shorts. There is another strong move to the downside through multiple support levels that takes place between 2pm and 3pm. In the last hour of trading there is a strong move higher out of a decline to reach a support level. We are going to cross over the 200-day moving average or something like that. This move creates a crest that we won’t see again. We fall from that in the post-market. Around the high we are going to have an M-shape around a price level where we pop above and dip, then repeat. Around the low we are going to have an upside down U-shape move and a significant move higher, with some moving back down out of that.
Looking to Tomorrow:
Two equal and opposite moves that cancel each other out. A notable move higher.