EMC2 might make another leg higher (stops and targets inside)
Short version: Buy in at 12375, stops at 10k, targets are 21986 , 32000, 51492. (Poloniex prices)
EMC2 has a nicely harmonic pattern. It seems to have bottomed and working on another upswing. These are usually quite explosive and don't last long, forming a sequence of bullflags with quite long tails of consolidation, down to the 0.618 fib of their flagpole.
We have reached this point again, and are making higher lows and higher highs, with a bullish cross of the 20 and 50 moving averages.
So, time to look for new targets and entrypoints.
Entry points would be anywhere it kisses the moving average and starts to move higher, but I would advise to wait for the breakout:
Breakout : 4h close above 200 MA or hourly close above the previous high at 12326. So buy in either here at 11130 or at 12375, preferably on a retest of the last high as support.
stop-loss on a 4h close below 20MA or 1h below 50MA as anything but a retest of support ; so perhaps stick with the 4h close. Wicks are fine. For an absolute figure: Put stops at 10k satoshis. Which is currently the 50MA
First target is the peak-to-peak' trendline from way back which proved resistance on the last high ( zoom out for source) coinciding with the 3.618 fib projection for the current bounce, at 21986 Sats.
This would also be an equal measured move following to the previous high, which broke out with the same pattern, as signalled here with yellow ellipses.
Next target is where the 1.618 fib from the larger fib projection begins to line up with the 6.618 of our current bounce, where I will let the larger pattern take precedence at 32k Satoshis.
Finally, moon, at 2.618 of the larger fib, and at the peak projection for a 5-wave "W" formation , we have 51492 Sats.
Ofcourse, this all depends on the next few hours; if the 20 MA doesn't hold as support, in which case we are looking at another leg lower.
I am cautiously optimistic for the fate of EMC2
EMC2 has a nicely harmonic pattern. It seems to have bottomed and working on another upswing. These are usually quite explosive and don't last long, forming a sequence of bullflags with quite long tails of consolidation, down to the 0.618 fib of their flagpole.
We have reached this point again, and are making higher lows and higher highs, with a bullish cross of the 20 and 50 moving averages.
So, time to look for new targets and entrypoints.
Entry points would be anywhere it kisses the moving average and starts to move higher, but I would advise to wait for the breakout:
Breakout : 4h close above 200 MA or hourly close above the previous high at 12326. So buy in either here at 11130 or at 12375, preferably on a retest of the last high as support.
stop-loss on a 4h close below 20MA or 1h below 50MA as anything but a retest of support ; so perhaps stick with the 4h close. Wicks are fine. For an absolute figure: Put stops at 10k satoshis. Which is currently the 50MA
First target is the peak-to-peak' trendline from way back which proved resistance on the last high ( zoom out for source) coinciding with the 3.618 fib projection for the current bounce, at 21986 Sats.
This would also be an equal measured move following to the previous high, which broke out with the same pattern, as signalled here with yellow ellipses.
Next target is where the 1.618 fib from the larger fib projection begins to line up with the 6.618 of our current bounce, where I will let the larger pattern take precedence at 32k Satoshis.
Finally, moon, at 2.618 of the larger fib, and at the peak projection for a 5-wave "W" formation , we have 51492 Sats.
Ofcourse, this all depends on the next few hours; if the 20 MA doesn't hold as support, in which case we are looking at another leg lower.
I am cautiously optimistic for the fate of EMC2
Comment:
For the moment, we are looking at a rejection by resistance
Comment:
Update: Intermediate target / resistance zone will be the 1.618 fib at 14k satoshi's, which corresponds with a range of previous highs during consolidation.
this same level is also the 0.618 of the previous big rally , and corroborates the earlier 20k target, while putting 28.8k on the map as resistance before the 32k secondary target can be reached.
Alright, chart starting to look a bit crowded. Keeping an eye on possible confirmation and rejection signals now.
this same level is also the 0.618 of the previous big rally , and corroborates the earlier 20k target, while putting 28.8k on the map as resistance before the 32k secondary target can be reached.
Alright, chart starting to look a bit crowded. Keeping an eye on possible confirmation and rejection signals now.
Comment:
party over for now. Below averages. Bullish cross of the 20 over the 50, we're not out of the uptrend potential, but as a trade we're not going there yet.