Day’s Theme: A notable and unexpected opportunity standing out on a multi-day scale.
Behavior Around the High: Multiple failed attempts to break through key resistance.
Behavior Around the Low: A decline through multiple support levels creating multiple new resistance levels on the way down.
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An opportunity to position oneself in both directions around the open.
There’s a bit of a rally in the pre-market into key resistance. Right around the open, there’s a notable move higher. There’s then a lot of decline from that resistance level into a trough first thing in the morning. In the midst of that behavior I would position oneself in both directions. Between 10:00 and noon, there’s a lot of sideways behavior, likely bearish. Around noon, there may be a move to the upside that fakes us out. That would offer a chance to exit the long position. We’ll revisit a support level in the midst of a decline between 1:00 and 2:00. That offers an opportunity to close the short position. Out of that decline, there’s a move from the bottom of a range to the top of a range. That’s followed by a failed attempt to break through resistance and a decline through support. That decline will take us into a low in the post-market or in the morning on the 7th.