Day’s Theme: A rally along a diagonal trend line that ends with a fast, sudden move higher and then a breakdown through that diagonal trend line.
Behavior Around the High: Meeting a support level at the high and then there’s a sharp drop from there on a one-day chart.
Behavior Around the Low: A notable decline into the low that offers an opportunity to open a long position for a swing trade.
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An opportunity to close a short position after we sell down from a peak or crest around the open.
An opportunity to open a long position after a sharp drop around 1:00. I would close that at a brief peak around the close.
Overview
In the pre-market, there’s a big move from the bottom of a range to the top of a range. We’ll also see a low in the pre-market. Around the open, we’ll sell from a peak or crest. If there was a short position opened the prior day you could close it after we sell off. We’ll then have sideways rotation along key support between 10:00 and 11:00. That’s followed by a fast, sudden move higher. Between roughly 11:00 and noon we’ll have price swings and some tricky behavior midday. We’ll have a pop and drop likely around 1:00 that takes us to another low for the day. There’s an opportunity to open a long position here and exit that around the close at a brief peak. We’ll then have another move higher around the close followed by a decline through multiple support levels moving into the post-market.