17 November 2020

TA Tuesday: Bullish and bearish flags

Patrick Heusser

Patrick Heusser

Head of Trading bei Crypto Finance (Brokerage) AG

Über den Autor

BTC$ (4h)
The triangle has worked out nicely, and yesterday it already reached the target (at roughly $16.8k).

The bullish wave structure is still in place, and as long we trade above $15.6k there is nothing to worry about (except if you are not long…).

ETH$ (4h)
ETH is not playing along as expected. The dip down into the $440 region has given some people quite a scare. From a wave structure point of view, I believe we need to dip below $430.

I removed the potential bull flag and changed it to an upward trending channel. I believe that if we break above $490, we will see more buyers coming in.

It looked like a really good idea until we hit the 0.0303 level. I have now lost faith in it. I will watch things closely with the stop level of 0.025 still in place.

If I see any good opportunities to move some of my ETH into a DeFi token I will.

AAVE$ (4h)
To have a bit more history, I switched to the Binance source, which combines the LEND and AAVE price action.

At roughly $90, we are near the ATH during the DeFi summer craze. However, it is a tough call right now… I am still long, but need to think of potentially taking some profit.

There is no clear sign yet that is turning me bearish, so I think the best way to play this is to place take-profit orders higher up.

COMP$ (4h)
Confirmation is here! Go long with a stop in the region of $110.

If you already have DeFi exposure, you can also try to place some limit orders further down. I believe we might see a dip just below the $120 level.

LINK$ (4h)
I have sort of lost my patience with LINK, and have taken off my longs. I will have another look at it, though, if we break through $13.75.

A major support level is still in place at $10.

SOL$ (4h)
No change here. We need to break $2.50 to get some additional fresh momentum to the upside.

SNX$ (4h)
I’m still holding on to my longs. As expected, the $4.50-$4.80 resistance is a tough cookie. But we are on track to push through it.

YFI$ (4h)
We saw some nice performance here. The next stop is $22k. Given the current overall market mood, I believe we will push through it.