We are chopping around in a very strong channel on low . For people looking for a long term hold, this is NOT the area to get into yet.
Instead, the plan as follows:
1) There is a chance of a breakout of the but it might require some pretty heft raise in to get through the resistance at $3820.
In case of a successful breakout to the top – with a safety area 10% above it – it will be relatively safe to assume we entered a reversal.
In that case, we are getting into the buy zone #2 but setting a stop loss at $3720 and frequently update the stop loss as long as the trend points upwards.
Beyond $6060 levels, sentiment should be largely positive such that we can narrow the stop loss to way lower percentages from the actual price.
2) If due to low we are going to break down beyond the current strong and leaving the current channel, we will likely fall into a very heavy between $2570 and $1820.
This zone will be so strong and hard to fall through (but breaking up, too) that we might see trading within this zone for quite some time before the reversal occurs.
I would consider this as the capitulation level and accumulation zone, with relatively little and common “boredom” also known as “the bottom”.
3) If we see leaving the heavy below $1520, it could make sense to release parts of the previously accumulated as we will enter “The Abyss”, with weak support, low and incredibly high .
Personally, I don’t see 3) happening, because this scenario would be way beyond capitulation and panic. But it will be good to have funds at hand if this case happens.
But also 1) is not that likely to me as we didn’t see enough weak hands being washed out. There is still way too much positive sentiment combined with low to see a steady uptrend happening.
You can watch progression of this plan under this link:
Donation Address: 0x285C0455D4B8c1b9e9D9f4a03bbFa130fEcD894B
Happy Trading!
Published at Thu, 14 Feb 2019 18:25:16 +0000
