Day’s Theme: A notable decline that offers an opportunity to open a long position.
Behavior Around the High: A decline through multiple support levels off of the high.
Behavior Around the Low: A failed attempt to break through key resistance and a decline through key support into the low.
Exclusive Trade Opportunities for Subscribers:
An opportunity to open a short position around 10:00.
Another opportunity to open a short position at a peak not long after the first opportunity.
On October 25th, there’s a pop and drop in the pre-market. There’s a peak or crest somewhere around the open that offers an opportunity to open a short position and a decline that creates a trough in the morning around 10:00 to noon. We may have another peak that offers an opportunity to open a short position. We’ll then have a big move to the upside to meet resistance between 1:00 and 2:00. That rally ends with a fast, sudden move higher and then a breakdown through a diagonal trend line around 3:00. That decline increases with volatility and takes us to another low for the day. There’s also a crest that stands out at the end of the day in the midst of multiple failed attempts to break through key resistance.
We’ll attempt to establish resistance near the low.