What we really need to watch for here is signs of a bottom. If this is the bottom for , we can enter and bag some nice profits! If not, we should practice good risk management, and find the proper entry.
If you zoom in, you will see that price just spiked above the upper of the channel, all the way to the 0.236 fib at 10618 sats . This is our first profit target, and offers a neat ~10% give or take.
is a lower cap coin (55mm), and I've noticed that fib levels generally create a general support / , rather than a specific level. Keep this in mind as we set profit levels and stops.
Our next target should be in the 0.382 fib (13356 sats ) . We can observe future price action to determine where in this zone our target should be. Selling in the beginning of the zone is the safe way to trade this. I think our zone anywhere from 12k sats to 14.5k sats . Once price reaches this level, a more specific resistance line should become clearer.
Should fail to break upwards resistance and instead retests support, keep an eye on the strong support in dark blue / black (8147 -7855 sats )
In this scenario, sell the break, buy the bounce.
When trading, I wait for a strong break through support, not just a slight violation. Especially with these lower cap coins.
I also look for reversal indicators when buying a bounce. candles have worked well.
You can set a Stop-Loss at 7.5k sats , but even better is to set alarms on Tradingview just above critical support levels if you are able to monitor price action in real time.
But either way always practice risk management!
Hopefully we can bag some cheap , and make a neat profit! I am expecting to get at least 20-30% from this trade mid-term.
As always, happy trading! :)
Excellent trade. I would take some profits as a principal, but see no reason not to HODL part of your position a bit more.