BCH bullish wedge in play

Allot of people asked me to update BCH including my own members, so here it goes :)

The big rally we had the past week when we broke the wedge happened with allot of volume. Confirming this move up completely. 100% textbook, just like some other alts have shown as well. If this was not crypto and if there was no Bitcoin, i would be 100% confident on this trade. But we all know, Bitcoin is still inside a very dangerous zone, even though there are some bullish signs, the bearish signs have the upper hand. So for BCH, if this green support holds, we could expect to see a rally the coming months. That would mean Bitcoin has to break upwards from that long term triangle it's still stuck in.
On the right we can see a triangle for BCH, which could still turn into a flag as well, but it's best it stays above that support. The drop of the last few days has only been a pullback of that wedge. So things are still looking text book here.

Previous analysis:

Comment:

To answer a question, about where to enter this trade when your not already in. What i would do is the following, what i would do is buy 12.5% here and wait it out a bit to see what Bitcoin will do, if it gets above 6600ish i would buy another 12.5% and than wait for the break out to buy another 25% and increase the position if i would see bitcoin break resistance levels or BCH showing big volume increase.

I see 2 options for BCH now, if don't think it will test the support again and go up, so either we go up now or we will probably break it and go towards that green support where it might find support. There i would buy my second 12.5%

But to make you understand what risk management is, my 25% is 25% of an amount i give this trade, so not 25% of my complete capital. I am risking 0.5% to 1.5% on a trade, meaning if i would have 10.000, i don't want to loose more than 150 if the trade fails. For the ones who don't use risk management, i would advise to wait for a breakout in combination of Bitcoin getting above 6660/6710. Because below that level the bears are still in favor

Comment:

So it did not touch the support line, which is a good sign it self. Showing buyers were eager to step in early. It broke the resistance, BUT the volume is very low for a breakout. So this could still fail. That's why i would move the stop close to the entry price now. If it hits than it's unfortunate, but doesn't mean the fun is over. Can always re enter again when the picture gets clearer.

Comment:

There we have some volume now, good sign. Stop at entry now for a free ride :)