Chat coin idea - what next? A matter of life and death!
Here I have done some analysis on chat coin. Based on the charts I am neutral, but a little bearish short term. Bullish long run of course, but there are many coins that I am bullish on long term. The question is, is this a good trading opportunity?
I have identified in the light green a possible Elliott structure. However, if our 4th correction wave down breaks below our 1st wave up, it probably isn't an Elliott wave.
Next, I have identified some key resistance and support zones, marked by the red and blue horizontal lines. I have placed profit targets by our resistance zones, and the yellow buy in zone at our support. If there is a breakdown with high sell volume, or a break out with high buy volume, it would be wise to either exit / enter the position accordingly.
Currently, we are testing our lower support. If there is a good bounce (only on high volume), we can enter a long position.
However, I am eyeing the 1490 - 1500 level very closely here. If price breaks down below here and does not immediately bounce up, we may be in for a ride down to 1430s, or worse, down to the 1300s. If you are in a position on this coin, watch it closely.
I have identified in the light green a possible Elliott structure. However, if our 4th correction wave down breaks below our 1st wave up, it probably isn't an Elliott wave.
Next, I have identified some key resistance and support zones, marked by the red and blue horizontal lines. I have placed profit targets by our resistance zones, and the yellow buy in zone at our support. If there is a breakdown with high sell volume, or a break out with high buy volume, it would be wise to either exit / enter the position accordingly.
Currently, we are testing our lower support. If there is a good bounce (only on high volume), we can enter a long position.
However, I am eyeing the 1490 - 1500 level very closely here. If price breaks down below here and does not immediately bounce up, we may be in for a ride down to 1430s, or worse, down to the 1300s. If you are in a position on this coin, watch it closely.
Comment:
*1490-1500 level, not the 1290-1300 level! My bad
Comment:
I would also not take many profits at the first green level, unless you are trying to day trade. If you are in this only to buy an entry and sell the targets, perhaps wait for the 2nd and 3rd green targets to take profits. Even then this coin has further upside, and if price action looks strong, hold part of your position.
I will update this chart as price unfolds. Give some likes to motivate me!
I will update this chart as price unfolds. Give some likes to motivate me!
Comment:
Death is the king's decree!
After breaking our support, price bounced up and down between lower supports and is now in a much more appealing buy zone
After breaking our support, price bounced up and down between lower supports and is now in a much more appealing buy zone
Comment:
Now we appear to be consolidating after bouncing off our lower support at 1269.
I think we can start a good uptrend from here, but that is speculation.
We could retest our support, and form a double bottom.
But a break would be a sure sell signal imo.
However, if we did break a bounce off our last support would seem imminent.
A strong bounce can fuel a coin to new highs, remember!
I think we can start a good uptrend from here, but that is speculation.
We could retest our support, and form a double bottom.
But a break would be a sure sell signal imo.
However, if we did break a bounce off our last support would seem imminent.
A strong bounce can fuel a coin to new highs, remember!