Daily Day trading Chart SOXL (1/18/2024)
A lower open before we see a rise to the 4hr
It looks like this morning we will probably open down, but end up in the positive for the day.
We just bounced off the weekly trendline today, and on the 4hr chart we never lost the 4hr hold level despite going deep into it and hitting thr 4hr Break level, which shot us up above the 4hr hold level and into the topside hold level right at the closing bell.
I see one of two situations playing out. They both include getting out of this wedge which means we can take trades from one side of the wedge to the other until we get closer to the end.
Price is funneling down into the wedge, and we ended the day at the top of the wedge, which is why I think we are going to open somewhere on the 4hr hold level or the 1hr hold level on the bottom side but in the middle of the wedge, and in the first hour hit the bottom side again before moving back to the topside.
If we keep making higher highs and the volume of trading keeps increasing, it would create a good scenario for the bulls to finally move up and break the 1hr and 4hr trend lines sending price looking for the 1hr and 4hr hold/break level, facilitating a nice 6-7% gain.
Despite price dropping 6% within the first two hours of the market being open today, we actually still laddered the move from a previous valley and ended the day down 1.5% or so, indicating a higher low. We also had a higher-high the day before. If this pattern repeats, we may end the week in the positive. (That is if we make a new high above Tuesdays high.)
If we reject off any hold levels in between the top side of the 1hr and 4hr break level, we will lose the bottom side 1hr trend-line and price will be sent back down to the weekly trend-line (purple) to “first-test” the bottom side 1hr break and hold levels.
