ALGOBTC | Key Level | Trend Reversal | Head and Shoulders
Todays Analysis – ALGOBTC – Forming a potential head and shoulders pattern, trading at a key level within a multi-month descending channel.
Points to consider:
- Range Median – key level
- Head and shoulders
- Low volume
- RSI below 50
- Stochastics oversold
ALGOBTC has found support at the range median of its descending channel. Price holding above the area will establish the right shoulder of a potential head and shoulders (H&S). Price breaking and consolidating above channel support will further validate this pattern.
A validated head and shoulders pattern will establish a higher low in the chart, indicative of trend reversal, forming a bullish bias in the market.
Volume is tapering off and remaining below average, an influx is needed price attempts to break channel resistance to avoid any false breaks as seen previously.
The RSI has broken below 50 indicating increasing weakness in the immediate market.
Stochastics are oversold and may remain oversold for some time as seen historically, before momentum shifts to the upside.
Overall, in my opinion, further price development will determine a directional bias. An S/R flip at channel resistance will allow for a long bias and a break below range median, price is likely to test channel support.
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:
- Range Median – key level
- Head and shoulders
- Low volume
- RSI below 50
- Stochastics oversold
ALGOBTC has found support at the range median of its descending channel. Price holding above the area will establish the right shoulder of a potential head and shoulders (H&S). Price breaking and consolidating above channel support will further validate this pattern.
A validated head and shoulders pattern will establish a higher low in the chart, indicative of trend reversal, forming a bullish bias in the market.
Volume is tapering off and remaining below average, an influx is needed price attempts to break channel resistance to avoid any false breaks as seen previously.
The RSI has broken below 50 indicating increasing weakness in the immediate market.
Stochastics are oversold and may remain oversold for some time as seen historically, before momentum shifts to the upside.
Overall, in my opinion, further price development will determine a directional bias. An S/R flip at channel resistance will allow for a long bias and a break below range median, price is likely to test channel support.
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 active:
SL moved to break even- just above range median.
Take profit at range resistance.
Take profit at range resistance.