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Ethereum bulls are receiving mixed signals from the market. We had a buy recommendation at $112 when Ethereum broke through on it's way to $125, but failed to penetrate the 50 Day MA. It has then rejected from this level and finding support just above the 20 Day EMA, which is positive. We remain bearish bias on the market until Bitcoin smashes through $3,800 and out of its descending channel.
Therefore we recommend the following:
1) Traders should take 50% profit right now and leave the remaining 50% in the market.
2) Stop loss should be moved up from $99 to $109. The reason being is if Ethereum crosses below the 20 Day EMA again we anticipate increased selling pressure from the bears for an eventual retest of $100. Which we don't have much confidence it will continue to hold forever.
Trading Indicators:
1) Stochastic has rolled over and generated a sell bar on the daily which we will listen. Again, 50% profit taking. Now we are trading for free in the market.
2) RSI has rolled back to neutral territory. Bulls have enough air above on all time frames (2hr to Daily) to take advantage to print a bullish impulse wave, however, it all depends now what Bitcoin wants to do.
Ok - the positive now is we are trading for free no matter what the market decides. If we continue higher we have our bag. If we get stopped out this is fine as we won't lose any capital on the trade. This is how we do risk management in an uncertain market. It will just be on to the next trade and wait for interesting prices again.
Regards,
Bobby
Ethereum bulls are receiving mixed signals from the market. We had a buy recommendation at $112 when Ethereum broke through on it's way to $125, but failed to penetrate the 50 Day MA. It has then rejected from this level and finding support just above the 20 Day EMA, which is positive. We remain bearish bias on the market until Bitcoin smashes through $3,800 and out of its descending channel.
Therefore we recommend the following:
1) Traders should take 50% profit right now and leave the remaining 50% in the market.
2) Stop loss should be moved up from $99 to $109. The reason being is if Ethereum crosses below the 20 Day EMA again we anticipate increased selling pressure from the bears for an eventual retest of $100. Which we don't have much confidence it will continue to hold forever.
Trading Indicators:
1) Stochastic has rolled over and generated a sell bar on the daily which we will listen. Again, 50% profit taking. Now we are trading for free in the market.
2) RSI has rolled back to neutral territory. Bulls have enough air above on all time frames (2hr to Daily) to take advantage to print a bullish impulse wave, however, it all depends now what Bitcoin wants to do.
Ok - the positive now is we are trading for free no matter what the market decides. If we continue higher we have our bag. If we get stopped out this is fine as we won't lose any capital on the trade. This is how we do risk management in an uncertain market. It will just be on to the next trade and wait for interesting prices again.
Regards,
Bobby