This_Guhy
Long

Another Inverted Head and Shoulders on ETHUSD

COINBASE:ETHUSD   Ethereum / U.S. Dollar
I am still incorporating the VPVR into my technical analysis but right now it isn’t really the center of what I am doing, so that may be the weakest part of the TA.
We see the last week of price action lead to the development of an inverted head and shoulders . The lower end of the volume area provided support for the head and right shoulder and the bounce is currently struggling at the point of control. If we get past the point of control the price action has a clear shot through the neckline and a Low Volume Node at $118. There is a high volume node that gets in between the target of about $122. The upper volume area is just prior to a relatively low volume node at $124.

The eight-hour chart shows some subtle divergences. The bold blue lines show hidden bullish divergence between the low of the 27th and our current low. The blue dashed line was added to accentuate how subtle the divergence is. Not the best entry signal. The black lines show the price action being flat with strengthening indicators. Both the RSI and MACD have turned a corner and that that suggest a move to the upside. But once again, not the best entry signal.

Entries into a position would take advantage of the neckline and low volume node and stop losses would use the lower volume area, which also defines the neckline. Big picture I am still bullish in ETHUSD and I hope to see us break above $160, see the linked posts for why, and please see the last call of an inverted head and shoulders from Jan 13th that performed beautifully. Rolling for a double.
Comment:
The circled wick definitely negates inverted head and shoulders and right now. Price action is still thick around the neckline of the invalidated head and shoulders, filling in the LVN that was apparent in the original post. There was strong buying below the Lower Volume Area and that area defines were our wicks left the candles real bodies.

If the price action goes edge to edge on the Volume Areas then we will be at $123 within 24-48 hours.
Trade closed: stop reached: Late entry this was closed a long time ago
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