ADABTC | Key Level | Bearish Price Action | Trade Setup
Today's analysis – ADABTC – Showing signs of exhaustion as it tests key a support level. Breaking below support, price is likely to retrace to daily support. However, if PA continues to respect the 21 EMA, a bullish continuation is probable, negating the thesis.
Points to consider:
- Bearish price action
- S/R flip re-test (trend reversal)
- 21 EMA (visual guide)
- RSI testing 50
- Bearish Stochastics
ADABTC showing signs of a local trend reversal as price retraces from local highs where bull moves are quickly being sold into by the bears. With body candle-closes below local support, price will likely retrace to daily support where it finds an equilibrium between supply and demand before a decisive macro trend continuation or reversal.
A break below the 21 EMA forms a bearish bias and an S/R flip re-test of local support and the 21 EMA will form a lower high, confirming the bearish bias.
RSI forming a lower high projection. A break below 50 is needed for price to break local support and retrace to lower levels.
Stochastics projecting down, breaking below 50 indicate decreasing momentum in the market.
Overall, in my opinion, a body candle close below local support validates a short trade to daily support with risk defined (SL) near local highs.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
Points to consider:
- Bearish price action
- S/R flip re-test (trend reversal)
- 21 EMA (visual guide)
- RSI testing 50
- Bearish Stochastics
ADABTC showing signs of a local trend reversal as price retraces from local highs where bull moves are quickly being sold into by the bears. With body candle-closes below local support, price will likely retrace to daily support where it finds an equilibrium between supply and demand before a decisive macro trend continuation or reversal.
A break below the 21 EMA forms a bearish bias and an S/R flip re-test of local support and the 21 EMA will form a lower high, confirming the bearish bias.
RSI forming a lower high projection. A break below 50 is needed for price to break local support and retrace to lower levels.
Stochastics projecting down, breaking below 50 indicate decreasing momentum in the market.
Overall, in my opinion, a body candle close below local support validates a short trade to daily support with risk defined (SL) near local highs.
What are your thoughts?
If you’ve read this far - thank you for following my work!
And as always,
Focus on you, and the money will too!
Trade closed: stop reached:
Strong impulse move breaking local highs - trade invalidated.