Trading Plan for 6/19

[pay]Pattern notes.
Wednesday’s tepid selling had opened the door to higher prices. Thursday’s buyers walked through it, grudgingly. A gap up above Wednesday’s highs could have ruled the day, but a weaker gap up was rebuffed into negative territory. Sellers weren’t biting. A surge quickly returned to Wednesday’s highs and then ranged there narrowly through the close.

The session’s price action offers no new clues, other than to confirm the template described in yesterday’s Trading Plan. Patient sellers stepped back into expiration, and their absence has given buyers a greater role in influencing price. The post-open ranging around prior highs is “ineffectual optimism” that is likely to resolve down, or else briefly probe higher highs.

Expiration influences are always a wild card, but this being a Friday, the morning’s bias is still likelier to persist through the noon hour. New sponsorship could appear in the session’s last 90 minutes.

Indicators and Internals.
RSIs reflected no buying or selling pressure of consequence Thursday. This inhibited afternoon volatility beyond the relatively narrow range already in place. It also helped to ensure that tests of support and resistance would hold. This complacency must end during Friday’s opening sequence, or else price action could continue to be inhibited into the afternoon.

Friday’s opportunities.
Thursday’s ranging already reflects pent-up buying and selling pressure. The most likely path for neutralizing each is to break higher, first. Each pressure can also be neutralized by gapping open – buying pressure can be neutralized by gapping down under the 905’00 prior low, and a gap above 924’00 would neutralize selling pressure. Attacking either would still be likely to reverse down.[/pay]