Let’s dive straight into the charts…
The market is teasing us. The price bounced for the 4th time from the 7.7k level right back up above the 8k level.
The overall sentiment still does not look healthy, and if I had to place my bets right now I would go short.
Since we have time, and rushing into trades is never a good idea, I will play this set-up in the following way.
If we break below 7.7k, I will go short 50% of the desired risk capital and another 50% after we break 7.4k. I’ll have buy back orders ready/placed at around 6.4-6.7k.
The trade is basically trying to catch the liquidity gap between 8k and 6.5k (volume bars on the right-hand side).
Stops should be placed very shortly after the break to the downside at around entry level. This us because my conviction of the trade is rather low.
It looks like we are trying to push towards the resistance zone: $200 to be exact.
There is a small liquidity gap between $180 and $200. But when looking at the big picture, it is clear that we are still in bearish mode. A first warning sign (or sign of a turnaround) would be if we break to the upside at $225.
No changes on trade set-ups. Still looking to go short if we break $160-165 to the downside.
Traders seem to be undecided (very similar to that of bitcoin traders) where the next move will go.
My boring view is that we are sitting in-between a $100 range: $1,450-$1,550.
I will stay put until we break out on either side.
The market is still in a bullish mode and pushing towards the $7.20 high.
The upper end of the Ichimoku cloud comes in at around $7.05, which to me indicates a good first support level.
If we break it to the downside, I will close my long position and reassess.
Unfortunately, no new developments or any trade set-ups worth mentioning.
The one from last week is still valid… Open another short higher up with a stop just above $64 with a target deep into the support zone at around $50.
This one is similar to the Litecoin chart. No new developments. I let the remaining 1/3 of the position run, but I’ve lost my conviction that it will break to the downside anytime soon.
For people who are impatient like me: close the remaining shorts now and go back in if we break the $200 level, as the overall sentiment is still bearish.
We are running up to the stop level for the shorts $555. The move up looks strong and I will close the last leg of shorts when we break through $560 on a daily closing basis.
At around $575 more resistance comes in, but it is possible that we will have turned bullish by then on the Ichimoku cloud.
With the general positive price actions in various altcoins (also for lower cap coins) it is important to keep an eye on this index. It definitely has some potential to the upside if we break through $560 on a daily closing basis.Read more