Market prep:
Price rallied yesterday from touching supply zone 4500's.
ON inventory continues to push price higher
Housing starts data - not expecting price to react significantly
Poor high from two days ago should break through 4536
Projections:
If price opens out of previous day range, I am looking for test of yesterday high 4526 and reversal pushing higher and may be a wide range day of over 45 handles
If price opens within range I am looking for more rotation between 4520 and 4547. I think 4515 auction has finished so looking for long opportunities today
Market close - second theory proved correct. 4515 showed low volume and a good support area. Showed a lot of chop before rotating upward. Price rotated through session as predicted. Poor high taken out in ON session. Open range opened within previous day indicating balanced day. Still, did not follow my theory and lost money.However price supported at 4513 not 4520. 7 handles incorrect. recouped and ended 450 up but high point was 1100 dollars. The drop in open rattled me and fear stepped in shaking out my rationale. Had I stuck to the game plan I would have made a lot more money.
Conclusions:
Price rotated and reverted to its POC at end of session
Price opened within previous day range thus resulting in rotational day or short time framer day
4515 - previous day POC was today's support zone. Which I indicated is a finished auction area hence the bounce back. 80/20 range cover was valid however the price is a heavy auctioned zone.
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