Quick update on BCHUSD, where an important support zone is approaching, a hold will confirm a macro S/R flip.
Points to consider, - Trend bullish - Key resistance broken - S/R Flip retest (.50 Fibonacci) - Stochastics in lower regions - RSI hitting support - MA crossed bullish - Volume Declining
BCHUSD’s trend has put in a new higher high, negating the bearish structure from yearly lows. Key resistance has been breached; BCH is now consolidating above as the S/R flip comes close to fruition, a test of the .50 Fibonacci is probable.
Stochastics is currently in the lower regions, can stay trading here for an extended period of time, however lots of stored momentum to the upside. RSI is hitting its potential support; a bounce may come to fruition as oversold conditions are not farfetched.
MA’s have crossed bullish, must hold BCHUSD as support when resistance levels get tested. The volume is clearly declining; this signals that a break in either direction is imminent.
Overall, in my opinion, BCHUSD has been consolidating above a key support level thus another leg up may be more likely, but this needs to be back with bull volume – Volume is rapidly declining.
What are your thoughts?
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And remember,
“Confidence is not "I will profit on this trade." Confidence is "I will be fine if I don't profit from this trade.” ― Yvan Byeajee