The reasons for that are the following:
1) We have completed the 5 waves in the past six months.
2) We are currently trying to break above this .
3) We have a divergence on the 5th wave between the AO and the price.
4) we broke above the and the AO indicator became positive.
The only thing that we are missing is an increase in and this is a very important factor for the growth of the asset.
On the , the buy was formed at a price of $15.32. The break of this would be the entry point
The stop loss is the sell which is currently at $12.98. Potential take profit is around $21.38 but before the profit can be reached we have to pass through a resistance cloud.
PS: this is a long term trading plan, can take around 3 months.
There are several scenarios of how this can turn out.
1. Re-check of a downward trend line. This will be a move towards the area of $14.55-$14.35 where we can find the Daily 50MA as support + the 61.8% Fiba retracement.
2. The pullback to $16.00 which is a 38.2% Fiba Retracement. If we will form a new local low there it would be a strong point to draw an upward trend line.
3. Form a double top or a divergence between the price and RSI. This will be a short upward move (maybe a spike) and then a move towards the 61.8% Fiba