(1) I wouldn’t think to call this chart of FB bearish in any regard however today’s price action on the hourly chart (left) is concerning for the bulls. When price establishes a spike high (long upper wick and strong rejection), pulls back, and then grinds back up towards that high while price remains inside of the 8-hour SMA bands it’s a sign of weakening momentum which often precedes a reversal. It’s not a sell signal necessarily as price could breakout to the upside but, in my experience, that outcome is much less likely. If I took a short (bearish) trade in this area I’d use the 382.76 spike high as a hard stop. Since there’s only an hour of trading left in the day I’d be exposed to overnight risk so there’s that to consider.
(2) There’s an interesting phenomena that, based on my observation, occurs at least 80% of the time. It is that price makes the high or low of the day (within a few ticks) during the opening range of trading. The opening range is the first 30 minutes of trading each day. It is well known that price undergoes a process of exploration during that time to find where the strong buyers and sellers are located. Consider the benefits of knowing that the high or low of the day is already established just 30 minutes into trading! 🤔
