BCH has painted a bearish divergence on the 4 hr time-frame. I will enter a short position if we lose the 4 hr 50 SMA since the previous couple of times the price dropped below the 4hr 50 SMA there was a sharp decline. I have highlighted this on the chart as well as the bearish divergence in the RSI. If a short position is opened targets will be in the $650-$660 range where we have strong support.
Comment:
We are testing the MA now. I'm looking at the 1hr chart now so it is the 200 SMA seen at $734
Comment:
As you can see we are testing the MA support once more. There is a bullish divergence on the hourly time-frame so I will wait for confirmation of broken support with a close below the 50 moving average on the 4hr time-frame. No position taken yet.
Comment:
Trade active:
We closed under the 50 MA support on the 4hr time-frame. I expect a small relief rally to maybe back test the MA support as resistance now then more down. I'll keep doing updates periodically.
Comment:
The 4hr chart shows a possible new down trend channel forming. I'll be watching the 50 MA (purple) as a key resistance and have my stop set at 785 (previous high above the downtrend channel).
Trade closed: stop reached
Trade active:
Disregard the last update, I thought my stop at 785 was hit on that last surge up but it turns out the high was a few points below my stop. We are currently trading right at the MA I've been watching (purple) which has crossed above the 4hr 100 MA (pink) which is a bullish sign. I'm going to hold my short with the same stop at 785.
Comment:
BCH fell below the Purple 200 MA on our 1-hour chart and is now finding support on the pink 400 MA (same as 100 MA on 4-hour time-frame). I'm very curious to see which MA acts as the stronger support/resistance here.
Comment:
Nice drop in price here! BCH has now lost the 100 MA (pink) and the 700 USD support. Next support is the trend-line formed by the previous two local lows shown in Cyan.
Comment:
BCH rallied back above the 700 support/resistance which was expected with how oversold it was after that last drop. As you can see from the screenshot, there is a hidden bearish divergence on the 1-hour time-frame.
Trade closed: target reached:
There is a bullish divergence on the 4-hour time-frame and seeing as I'm up 10% on this trade, this is a good opportunity to book profits. Trade closed w/ 10% profit.
Happy Trading :)
Happy Trading :)