Last analysis played out nicely and we saw 1INCH rising to the price levels of 1.40. If you kept the chart closely you noticed the bearish divergence on the RSI (or any other similar indicator) was a great opportunity to take profits as it indicated the pullback we see currently. However, there are 2 scenario's at play we need to consider before taking any new positions. In the bigger picture we see both a rising wedge and and ascending triangle forming.
Preferably we want to see new high's but it's important that the 1.14 support area holds and that the price levels retraces back up from there (making it a false breakout). If it doesn't, the rising wedge is at play which may mean that on an even grander scale, the chart is basically one big fat bear flag and it's likely we see even higher low's. It's essential to see how this further develops before we can commit to a position.
Just a short-term observation, take positions at your own risk. If you have any thoughts or ideas, I'd love to hear them.
Trade safely.
Preferably we want to see new high's but it's important that the 1.14 support area holds and that the price levels retraces back up from there (making it a false breakout). If it doesn't, the rising wedge is at play which may mean that on an even grander scale, the chart is basically one big fat bear flag and it's likely we see even higher low's. It's essential to see how this further develops before we can commit to a position.
Just a short-term observation, take positions at your own risk. If you have any thoughts or ideas, I'd love to hear them.
Trade safely.
Comment:
The price hasn't bounced back so we can assume the rising wedge is in play. Both support areas has broken, unless it bounces back from the 1.06 area, it's likely it will drop sub 1 dollar and we need see if it holds the 0.97 and 0.86 support areas
