I am still long from 298.84 with my stop now adjusted to 286. At this point, in order f or me add to my position, price needs to show proof of strength. The 315 level is a tough range resistance and also a lower high formation which is not what I want to see when I am long. A break below 288 will confirm the 315 and a good level for me to be out of this trade. I think I gave it plenty of time to prove itself.
The 297 to 294 minor support (.618 of recent swing) is holding price up at the moment, and in a more environment, this would be a good place to go long or add upon a reversal signal. Since price is coming from a , I suspect this support is more likely to break. Keep in mind this market is consolidating and during these conditions, price can do more random things as compared to when price is trending. By adjusting my stop higher, I am lowering my risk on my small position while still giving the market some room to reverse back in my favor.
If I get completely stopped out at 286, I will not consider getting back in until this market starts moving big one way or the other. That means a or break of this consolidation will get my attention ONLY. From there I will reevaluate the potential for any swing trade longs. If the mid 280s is taken out, then the key level to watch is 270. If that breaks then the 250s become a strong possibility again (I wrote about this level in previous ETH reports).
Keep in mind I only trade these markets from one side and that is the long side. I understand many of the newer traders who seek action and adventure get anxious when I do not have any trades to talk about. If you are looking for broader movements in markets where reward/risk is decent and you are not trading anything else, consider the forex markets. There is a ton of activity there.
In summary, the price action in this market is not favorable for buying more at the current levels in my opinion (this may change if 310 is taken out). Not only is this market in a small range between the 273 low and the 310 area high, but it is right in the middle of a huge range (355 high and 136 low). In situations like this, swing trading is not the best strategy because of the overall lack of follow through like this market has been showing over and over. So it's either day trade, take small profits or position trade which is buy and hold small portions with very wide stops to avoid getting stopped out in the noise. In order for the market to be in play (meaning it is making progress in either direction and not gyrating) this range needs to be taken out. This is all about adjusting and being flexible. For those who are new to these markets, BTC was quiet for 2 years before it started making some real progress. I believe in the long term the break out will be to the upside, but until it starts showing more signs, I am just going to sit tight and observe.
Comments and question welcome.
Thank you for the great info.
Are you still long on ETHUSD? Any thoughts on the recent pump to 340?