I believe there is a good chance that we will see a substantial rally within the next 1-3 days. Not only are longer terms RSI in oversold conditions but margin positions are very favorable for Bulls. The last 2 times we seen margin long/short ratio go as low as one, saw significant moves to the upside. In fact, they were near perfect indicators for picking the weekly bottom. Furthermore, the sentiment as of late has been too bearish and the shorts have been sitting too comfortably as of late.
Hence, I believe entering a position at the current $6,100 and laddering further bids down to $5,800 is an extremely attractive risk to reward proposition.
Hence, I believe entering a position at the current $6,100 and laddering further bids down to $5,800 is an extremely attractive risk to reward proposition.
Trade active:
Take half profit at this 6400 level and let the rest ride.
Trade active:
Take the profit from selling at 6400 and put it back in here at $5,950. We are about to witness an epic short squeeze.
Trade active:
Take profit again half the position at $6480 and let the rest ride with tight stop losses in place. Situation still looks favorable to me but downside risk has increased now that shorts have come down a bit and margin longs has creep up. Sentiment also continues to be negative and I do not see this changing soon unless there is an ETF approval or custodians.
Trade closed manually:
Close remaining position or at least majority at the current $6,920 level. I believe it could easily still run $500+ but risk has increased with RSI being oversold on so many timeframes. There's also a potential head and shoulders pattern that's developing.