In a previous post I shared my concern that BNB may not hold the up trending support line.
Current Situation:
ATM it looks as if BNB is breaking the diagonal trendline support. If you are in a short, congratulations. Regardless, it seems like a good time to look for a long entry.
Entry Levels:
To determine my entry, I will use Horizontal support levels and the RSI level will trigger the timing of the entry.
The range between 260 USD and 300 USD is strong support for BNB. To narrow this range further we can use the imbalances that BNB left on the Chart in March (The green boxes) between 275 USD and 300 USD. I expect BNB to fill at least the first imbalance between 288 USD and 300 USD. IMO, BNB is not likely to fill the lower Imbalance between 276 – 285 USD.
If you look at previous lows (December and March) you will find that BNB responds very well to the oversold level of the RSI (at 30 or lower).
My plan is to enter a long based on two conditions:
1. The upper imbalance (at least) is resolved
2. RSI is at 30 or lower.
Target:
BNB has a few resistance levels on the daily chart:
1. 345 USD upper resistance of the range.
2. 400 – 414 USD Horizontal resistance. The 400 level is a round number and there is a wick close to that level since November.
3. 461 USD is a horizontal resistance as well as the 1.618 target.
Consider TP at these levels.
Trade Idea:
Entry: 290 USD
SL: 275 USD
Target: 460
NFA.
Will appreciate feedback.
Current Situation:
ATM it looks as if BNB is breaking the diagonal trendline support. If you are in a short, congratulations. Regardless, it seems like a good time to look for a long entry.
Entry Levels:
To determine my entry, I will use Horizontal support levels and the RSI level will trigger the timing of the entry.
The range between 260 USD and 300 USD is strong support for BNB. To narrow this range further we can use the imbalances that BNB left on the Chart in March (The green boxes) between 275 USD and 300 USD. I expect BNB to fill at least the first imbalance between 288 USD and 300 USD. IMO, BNB is not likely to fill the lower Imbalance between 276 – 285 USD.
If you look at previous lows (December and March) you will find that BNB responds very well to the oversold level of the RSI (at 30 or lower).
My plan is to enter a long based on two conditions:
1. The upper imbalance (at least) is resolved
2. RSI is at 30 or lower.
Target:
BNB has a few resistance levels on the daily chart:
1. 345 USD upper resistance of the range.
2. 400 – 414 USD Horizontal resistance. The 400 level is a round number and there is a wick close to that level since November.
3. 461 USD is a horizontal resistance as well as the 1.618 target.
Consider TP at these levels.
Trade Idea:
Entry: 290 USD
SL: 275 USD
Target: 460
NFA.
Will appreciate feedback.
Trade active:
This idea is still valid. As long as BNB doesn't go above the trendline, I am waiting for lower. the 290 USD level is likely IMO.
The RSI is not oversold, yet. Be sure to keep an eye on it as a possible bottom signal.
ATM, the plan is proceeding as expected.
Patience.