As in my last ETHUSD post, I believe we are still in a Pennant. In fact, the last day or so has bounced between the trend lines a few extra times making it a "tighter" Pennant. I'm waiting for reentry around $306-308 which suggests a possible uptrend.
Expecting $335 target in 4-5 days for ~%10 profit with some resistance along the way at $316
** Comments and Critiques always welcome especially conflicting analysis ideas. ** Twitter: @CAG_CryptoTA
So based on your chart, why would it break up instead of down?
caguillen214
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@EtherSwinger, Good question! I'm basing my analysis on the fact that I believe a pennant chart (investopedia.com/university/charts/charts6.asp) is forming. You start to see the price settling around the local supports thouroughly testing them. A break out in any direction is possible but given that I believe BTC is headed upwards soon (check out my other post not BTC for reasoning), ETH should follow suit. You have to be careful when considering getting in and should look for a break away before committing.
Just my thoughts!
EtherSwinger
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@caguillen214, is that a pennant or triangle though? I thought the strong initial trend candle suppose to create the left side of the triangle
caguillen214
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@EtherSwinger, You're right, its probably closer to a triangle in form. However, those generally span over a longer period of time so thats why I chose to describe it as a "loose" pennant. Regardless, triangle charts tend to continue the previous trend which was an uptrend. That coupled with the direction I think BTC will go leads me to believe the an upward trend will follow.
Thanks for your insight. I appreciate comments that challenge my own ideas and cause me to rethink my analysis.
EtherSwinger
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@caguillen214, No, thank you for your valuable TA.
It looks like you might be right. BTC broke upward very strongly this morning. ETH seems to be lagging but seems to be in line w/ your analysis. We will continue to monitor. Keep it up. Cheers!