Day’s Theme: A decline that ends with a fast, sudden move higher.
Behavior Around the High: Multiple failed attempts to break through key resistance.
Behavior Around the Low: An important support level at the low.
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I’m advised to trade around a notable move higher standing out on a one-day chart.
A decline midday offers an opportunity to close a short position.
An opportunity to open a long position for a day trade in the afternoon. I would close that after a big move higher into the close.
We’ll either open higher or rally higher around the open. We’ll then have some sideways rotation with a sharp drop that stands out and a low between 10:00 and 11:00. There’s another decline midday to a support level that offers an opportunity to close out of a short position. We’ll have some sideways rotation followed by a prominent move higher. We’ll then have more sideways rotation at that higher price level. After that move higher, we’ll have another decline that offers an opportunity to open a long position for a day trade. I would close that long position after a big move higher into the close.
A low the morning of the 6th.