Morning Session Overview
The trading day began with a focus on key technical levels and structured scenarios:
- Initial Context:
Overnight High (ONH) at 5915.75 was rejected early, with price consolidating around 5900. The Line in the Sand (LIS) for the day was identified as 5890, a pivotal level for maintaining the bullish narrative. - Bullish Scenario:
Sustained bids above 5890 were projected to target a progression through 5915, 5923, 5925, and potentially 5930.
Execution Highlights
- Early Trades:
- Initial price movements aligned with expectations, with the 5915 target being tested and fulfilled shortly after market open.
- Pullbacks provided re-entry opportunities for long trades, leveraging the LIS at 5890 and ONH of 5915 as critical support levels.
- Upside Targets:
- The 5915-5930 zone was progressively achieved, with intermediate levels 5923 and 5925 hit in sequence.
- The final upside target of 5930 was tagged by 11:38 AM, completing the day’s primary bullish scenario.
- Cycle Plan Transition:
PTGDavid outlined the Cycle Day 1 framework, anticipating a possible short squeeze reversal post the prior session’s decline. This strategy played out with precision as price reversed after hitting 5930, fulfilling the reversal scenario outlined earlier in the day.
Midday Analysis
- After achieving the morning’s upside targets, price action entered a consolidation phase.
- Critical Observations:
- A pullback to 5910 (Midpoint/VWAP) offered a potential “Look Below and Fail” opportunity, termed the Whiplash Long setup.
- PTGDavid emphasized the importance of using widely recognized levels like VWAP to gauge market response, fostering alignment with broader market sentiment.
Afternoon Session Summary
- Range-bound Trading:
Price containment within the 5910–5920 sandbox characterized the afternoon session, reflecting a balanced market state.- The Market-on-Close (MOC) sell imbalance was easily absorbed, underscoring strong liquidity and stability near the session’s close.
- Key Lessons:
- Stay in alignment with the dominant force.
- Use clearly defined levels (e.g., LIS, VWAP) for precision entries and exits.
- Trading remains objective; adapt critical levels to fit individual strategies.
Conclusion
PTGDavid’s structured approach and clear communication of key levels and scenarios provided traders with actionable insights. The day’s Bull Scenario unfolded as planned, demonstrating the importance of disciplined execution and adherence to predefined strategies.
The transition into Cycle Day 1 and afternoon consolidation capped off a highly effective trading session.